Diversification is key to success

To make money in these markets and reduce risk investors need to diversify their portfolios and focu...

To make money in these markets and reduce risk investors need to diversify their portfolios and focus on assets that are not closely correlated with each other, according to Gary Dugan, Global Strategist at JP Morgan Fleming. 'Making money used to be very easy, more than two years ago markets only went up, bond yields fell, and we had productivity miracles,' he told delegates at the recent Investment Week Markets Forum 2002. 'The new world we live in is one of falling equity markets.' According to Dugan, over the past 30 months the returns of all the main markets in local currency ter...