September 2011

This is one of the more frequently used phrases within the investment industry and essentially it means not putting all of your eggs into one basket… hence the 'correlation' of one particular asset to another. The idea being to spread one's exposure to risk, once your money is converted into shares, corporate bonds, gilt-edged securities, etc.

Historically, whenever one asset class had been doing well, one could reasonably expect another class to be doing less well. For example, when stock markets boomed property was usually steady, whilst gilts performed less favourably.

Generally speaking, this relatively predictable behaviour allowed us to design a portfolio of mixed assets which offered an opportunity to capture growth (wherever it was occurring) whilst reducing volatility.

However, the diversity of events (both political and economic) which are currently taking place across the Globe have brought about a breakdown in this previously predictable behaviour between asset classes. As each crisis unfolds we encounter unexpected changes (with the only exception at the current time being gold) which then lead to uncharacteristic swings within your portfolio.

Asset prices are moving up and down so rapidly that trying to 'time' the markets – which essentially means buying low and selling high – is a very risky undertaking. Taking a positive view, it is politicians who are largely responsible for the current financial crisis and they will quickly have to find solutions, as they seek re-election!

Meanwhile, we will endeavour to sail a steady ship on your behalf.

Meet the Argyle Community

Over the coming months we are going to introduce some of the individuals who make up the Argyle client group. Several (including a number of very well known faces) have agreed to provide us with an insight into their lives… starting with Clive Marshall, CEO of the Press Association, who has been a client for almost 30 years.

http://www.youtube.com/watch?v=OzZk4T-Xkb0