The current instability witnessed in the Chinese stock market has hit investor confidence hard and some analysts are warning that the region should expect more volatility.1
Whether China, and its surrounding neighbours, remain the epicentre of current market instability, one thing is certain, investors need to focus their asset allocation toward adding some truly diversifying investments.
We have attended events in the past where colleagues have eagerly focused discussion toward allocating investment to truly alternative asset classes. Finding alternative investments which are truly uncorrelated to traditional market risks like volatility and inflation, whilst directing focus on stable long term performance, can appear rather daunting. Alas, there is an asset class which exists to fulfil these objectives.
When planning for strategic asset allocation, an investment in a portfolio of secondary life insurance policies can prove to be a powerful tool during periods of severe and prolonged market volatility. It allows you to diversify your investment portfolio into an alternative asset class where the underlying assets are not correlated to events in the stock, bond or property markets. This helps reduce the volatility in your investment, whilst maintaining the potential for a strong return.
To investigate this topic further please continue on to the Investment Manager’s Blog.
*This post originally published 27 August 2015
1. The Guardian, “Stock Markets Continue to be Volatile as Investors Fear China Risk”, 26th August 2015, [ONLINE] Available at: http://www.theguardian.com/business/2015/aug/26/stock-markets-continue-to-be-volatile-as-investors-fear-china-risk, [Accessed 27 August 2015].
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