Japan, emerging markets and private equity stand out as important themes

asset allocation

The key to operating an investment trust in the current volatile market is shrewd bottom-up stock selection, focusing on either a particular sector, region or country opportunity, rather than the top-down approach of the previous bull market

How times change. Emerging from a savage bear market, asset allocators find things very different. Now, the wise allow stock selection largely to determine asset allocation. That is to say, an over or underweight country, and regional or sectoral position stems from bottom-up and not, as in the roaring bull market, from top-down. The UK stock market had another strong month in September, led by sectors like steel, mining and construction. Oil and materials stocks also continue to do well. Corporate earnings have been mixed, but disappointments have in some cases been severely punished. F...