Deep Dive: Alternatives offer diversification as stocks and bonds fall in lockstep

‘New macroeconomic regime’

James Baxter-Derrington
clock • 5 min read
Investors cannot rely on their knowledge of the recent past to guide their investment decisions and must think harder about diversification and resilience than before
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Investors cannot rely on their knowledge of the recent past to guide their investment decisions and must think harder about diversification and resilience than before

For the first time in over a decade, listed stocks and bonds are positively correlated. Combined with geopolitical tensions, record inflation and monetary policy shifts, investors are having to look further afield to achieve returns.

Experts that spoke to Investment Week for our Deep Dive explained that alternatives, while not a silver bullet, offer investors an effective diversifier that can be worked into a full portfolio. A new macroeconomic regime Investors cannot rely on their knowledge of the recent past to guide their investment decisions and must think harder about diversification and resilience than before. Xavier Baraton, global chief investment officer at HSBC Asset Management, explained that we are now entering a "new macroeconomic regime", which will be characterised by persistent inflation, higher ...

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