FÜR QUALIFIZIERTE ANLEGER

Diversifizierung und grössere Abstände

We believe investors need to go beyond broad equity and bond exposures to diversify portfolios in this environment, and include factor-based allocations and alternatives.

What’s changing?

Markets have been seemingly unfazed by persistent political uncertainty, with the VIX (CBOE Volatility Index) currently hovering near multi-year lows. Volatility, however, is subject to sporadic outbursts that can wrong-foot investors. We still see bonds acting as effective shock absorbers in portfolios in such times of market stress. But they offer little safety cushion at today's still-low yields.

What, me worry?

US economic policy uncertainty and equity volatility, 2014–2017

Different diversification

BlackRock Investment Institute, Baker Bloom and Davis Economic Policy Uncertainty Index and Thomson Reuters, March 2017.
Notes: The economic policy uncertainty index measures policy-related economic uncertainty based on newspaper coverage of related terms. The CBOE Volatility Index, or VIX, is a measure of the implied volatility of S&P 500 Index options.

Achieving diversification has grown more difficult, and we believe investors should consider a broader approach than a traditional bond/equity mix, potentially adding factor exposures and alternatives such as private credit and real estate. Introducing new asset classes to portfolios – or employing strategies that can take idiosyncratic risks – looks compelling in an environment that still favours risk-taking and is driven by the differentiated effects of reflation and politics. We believe this may offer a rare path to attaining above-market returns at a time when broad markets may disappoint.

 

Download Different Diversification Report

Suggestions for adapting to greater dispersion and portfolio construction challenges: Be innovative to diversify your portfolio

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This material is prepared by BlackRock and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of March 2017 and may change as subsequent conditions vary.

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