The Big Question: What is the best way to add risk back to portfolios?

Julian Mayo, Charlemagne Capital Buy Emerging Markets   In a word, or three words: ‘Buy emerging markets’. Investors need to consider both traditional thinking on risk, and risk in today’s world.  Historically, emerging markets equities are indeed a risky asset.  They have been more volatile than western markets. There are several reasons for this, including past crises, notably about a decade ago (the Asian Financial Crisis in 1997-8, the Russian and Argentine defaults) and, more recently the Arab Spring.  Secondly, the marginal buyers of global equities have been concentrated...