How to achieve diversification

F&C's Paul Carne looks at how to achieve diversification in a volatile environment

The last 18 months has seen the market experience tumultuous conditions and it remains nigh on impossible to correctly forecast the best performing asset class or segment for the longer-term. Such uncertainty has caused saturation in those areas of the market that have been able to continually demonstrate resilience and growth throughout the recession, such as the emerging markets and sterling corporate bonds. So how does one achieve diversification in such an environment? Achieving diversification Diversification can be achieved via correlation, by examining the relationships betwe...