Shifting fortunes necessitate shifting funds
Dennis Hall comments on asset allocation and the correlation between asset classes, noting the recent convergence in returns between property and equity.
Asset allocation becomes even trickier when the issue of which asset classes are non-correlated is considered. Over the past year, as the credit crunch has taken hold, some asset classes that are usually thought to be non-correlated - property and equities, for example - have in fact fallen at the same time.
Dennis Hall, a financial adviser at Yellowtail, suggests that the recent convergence may be because property has been treated more as an equity, with people investing in it for capital growth rather than for its long-term rising rental yield.
You can read the entire article on the FT website.
