When it comes to building a defensive portfolio, the challenge that has faced advisers is understanding the direction of the market and the outlook for the economy.
In the event of an economic downturn, traditionally, government bonds would rise in price as investors take the view that, even in the worst of all worlds, governments can make payments, making the bonds they issue a safe haven.
That means, historically, that advisers wanting to construct a defensive portfolio simply had to sell off some of the equities they own, and buy more government bonds.
But what has traditionally worked in terms of defensive equity exposure may not work this time, as a result of the correlation between equities and bonds and the level of unpredictability in world politics.
This guide will look at the how advisers and fund managers are exploring what it means to have a defensive investment strategy in this new world.