Part six of an eight-part series on the lessons to learn from stock market history examines the importance of diversification – and particularly the need to balance riskier assets, such as equities, with less volatile ones, like bonds. Because shares and bonds have a negative correlation, having an element of both is advisable.
Expert analysis from William Sharpe, Tim Hale (Independent Adviser to Wealthflow LLP), Richard Wood, Elroy Dimson, Janette Rutterford, Bill McNabb and Weston Wellington.
My hope is that this series will help ordinary investors to see through the marketing and media hype and make better investment decisions as a result.
I am grateful to Sensible Investing TV for permission to include this video series within the Wealthflow blog.