For most of the past 30 years, equities and government bonds have been negatively correlated, which means that blending them in portfolios has had diversification and volatility-smoothing benefits. But over the past three years their correlation has turned positive. If this positive correlation continues, which we think likely, then what are we using to diversify […]

The start of 2025 has witnessed a sharp reversal of the previous outperformance of US equities versus the rest of the world. We were already positioned to be underweight the US relative to global indices at around 40% of the overall equity portion of portfolios. This relative performance begs the question of whether it is […]

Barely a day goes by without a news story featuring a dire warning regarding the climate and how we need to switch to low or zero carbon energy sources. Certainly, much investment has gone into renewable energy projects, such as offshore wind farms, in recent years. And if you watch a TV advert for a […]