7IM duo sees end in sight for asset class correlation

7IM is convinced the upward correlation between gold, equities and fixed income has got to come to an end. How it ends and how to manage portfolios when it does is just one of themes discussed by the group's directors Justin Urquhart Stewart and Tom Sheridan.

How are your portfolios positioned? TS: The portfolios now, as they have been for most of the year, are overweight equities. We have been wary of fixed interest securities, particularly government securities during most of the year. For some of the year that has not been right, but it is looking better now. On the alternative side, we continue to have exposure to commodities, hedge funds and select currencies. JUS: We are seeing the Eastern economies trying to slow themselves down, and the Western economies generally mired in debt and trying to work their way out. So does that mea...