Cheetham Jackson - Smart Investment

CHEETHAM JACKSON 11 Today, the UK stock market represents just 9% of world stock markets by market capitalisation. Surprisingly, many UK investors still invest most or all of their stock market investments solely in the UK.This means they are missing out on the growth potential from the rest of the world, including economic giants like the US, and fast growing emerging markets in China, India, South-East Asia, Latin America, Africa, and the Middle East.To further improve diversification, and gain access to the remaining 91% of theWorld’s stock markets, we recommend a global stock market portfolio which includes not just the UK, but the rest of the world as well. In the same way, we recommend investing from a range of gilts, government bonds, corporate bonds and similar fixed income securities on a global basis, and not just in UK securities. In this way, you are able to capture some of the best returns available globally, and avoid being over- exposed to a small sector or area, with the corresponding increased risk that involves. *** Diversify globally within each asset class We believe the answer to the question is:: “A balanced, diversified portfolio investing in a wide range of investments is the best way to achieve the returns you need.” ** Data Source: Dimensional Fund Advisers ‘Matrix Book’ 2010