Talking Point  

Multi-asset investors urged against knee-jerk reaction to recession fears

"Adding assets that have low correlation to equities over the long-term can also provide support in more troubled times, but some may be less liquid." 

"Gold is an example of something we believe can help manage risk within portfolios and can provide particular support when geopolitical tensions rise and, contrary to many opinions, when we experience deflationary environments, rather than inflationary."

But investors have been urged not to see multi-asset investing as the silver bullet that will always give positive returns in a down market.

Nathan Long, senior analyst at Hargreaves Lansdown pointed to 2008 when multi-asset investments held up better than some other investment strategies in the wake of the financial crisis

But he added: “You’d expect it to shelter better but to think you would be immune is wrong. The thought that we are going to be able to shelter investors from any drop in the stock market is false. You are still going to get sizeable drops for individuals.”

This is why investors should be more long-term in their approach, he added. They should also consider when they need the money because it might benefit them more to sell out to cash.

Mr Brown said, that there is no "silver bullet" for protecting portfolios from all risks. He added:"Therefore we believe a key part of risk management is building in a range of assets that all provide protection against a range of potential risks."