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, Richard Wood, Elroy Dimson, Janette Rutterford, Bill McNabb and Weston Wellington.
Please share this content using any of the share buttons below. Please see this page for guidelines on embedding videos and other content in your own website or online marketing.
Carl Richards Improving Client Experience
Carl Richards on... Investor Behaviour
Why investors in emerging markets should focus on value
What can history tell us about emerging markets?
Four surprising facts about emerging markets
A Dummy's Guide to Smart Beta, part four
A Dummy's Guide to Smart Beta, part three
A Dummy's Guide to Smart Beta - part two
A Dummy's Guide to Smart Beta - part one
Fund Managers Uncovered, part four
Fund Managers Uncovered, part three
Fund Managers Uncovered, part two
Fund Managers Uncovered, part one
Stock Market History: A Crash Course for Investors, part eight
Stock Market History: A Crash Course for Investors, part seven
Stock Market History: A Crash Course for Investors, part five
Stock Market History: A Crash Course for Investors, Part four
Stock Market History: A Crash Course for Investors, Part Three
Stock Market History: A Crash Course for Investors, Part Two
Stock Market History: A Crash Course for Investors, Part One
What have we learned from stock market history?
Passive Investing Theory, part four: Portfolio Theory
Passive Investing Theory, part three: Market Efficiency
Passive Investing Theory, part two: The Random Walk
Passive Investing Theory, part one: Investing vs. speculating
RDR: a guide for investors - part three
RDR: a guide for investors, part two
RDR: a guide for investors - part one