How to Build the Perfect Investment Portfolio

The perfect investment portfolio requires bonds, stocks, alternatives and cash. But how can investors blend these assets to create an all-weather portfolio?

Emma Wall 4 December, 2013 | 5:12PM
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Investors should take note of the law of stock market gravity: what goes up, must come down. 

The golden rule of building a profitable portfolio is diversification - both between asset classes and global exposure. In these times of record low interest rates most portfolio managers are shunning cash, preferring to opt for higher yielding assets such as equities or high yield bonds. 

But one multi-asset manager is taking a contrarian view. Cazenove fund manager Marcus Brookes, has a sizable allocation to cash as he says in the current investment environment it is the only true diversifier.

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About Author

Emma Wall  is former Senior International Editor for Morningstar