Bonds have traditionally been perceived as one of the “safest haven” assets by investors during times of geopolitical turmoil.
This is largely due to the fact that bonds and equities have typically shared a negative correlation, that is, when one goes up and the other goes down.
But 2018 proved to be a tumultuous year for several assets, and this relationship began to fade, with both of them moving in the same direction.
This was a result of central banking activity across the globe, and depressed macroeconomic conditions.
Despite this, equities are believed to outperform cash and bonds in the coming years according to commentators.
For advisers this is a time not only to reassure clients but also to reassess what the best strategy may be for their clients to achieve defensive exposure, and diversify their portfolios.
Talking Point, in association with Schroders, considers how advisers can help investors seeking defensive exposure.
The report, which can be read by clicking the link in the image above, qualifies for an indicative 30 minutes' worth of CPD.
saloni.sardana@ft.com
