Insights

Global bond markets suffered their biggest fall for more than three decades as they reacted to rising inflation and the prospect of interest rate increases. Is this trend going to continue and what does it mean for investors?

Investors are often attracted to property by the potential for growth, especially as house prices continue to rise. But there’s much more to this asset class than just residential property.

At the heart of investing is a simple concept that goes a long way in helping to understand what it’s all about: the risk-return trade-off.

Over the last couple of years investing may have felt like being on a rollercoaster: markets fell sharply as the COVID-19 pandemic took hold, began to recover and were then hit hard again by the war in Ukraine and its wider economic consequences including rising inflation, interest rates and the cost of living crisis.

When US economist Harry Markowitz set out his Modern Portfolio Theory in 1952 he probably didn’t imagine that nearly 70 years later it would still be guiding the way we invest our money.

The desired investment outcome is the cornerstone to designing an appropriate investment portfolio. Investment professionals use a range of tried and tested processes to construct and manage the portfolios you may invest in. Here we look behind the scenes at some of what’s involved and the language that’s used to describe it.

We each have our own reasons for investing, for some it is the desire to buy a property or grow a savings pot for a comfortable retirement. However, some simple motivations lie beneath.

If you are not already familiar with alternative investments it’s worth being aware of them as they can play an important role in helping to create a balanced, diverse portfolio.