Brunner's strategy for dealing with rising market volatility

Lucy Macdonald, co-manager of the Brunner investment trust, says investors need balanced portfolio exposure and valuation discipline to take advantage of short-term opportunities.

After several years of relative calm, volatility has started to rise. This is not a surprise, but investors are having to reacquaint themselves with the art of managing money in a world of greater price fluctuation.   For active long-term investors, more erratic short-term price behaviour provides interesting opportunities, but taking advantage of them to produce good performance requires strong convictions. In the last year, sharp unforecast moves in currency and commodity markets have been seen. More recently bond markets have been affected, with a gap below 2% in treasury yields on...