Our mantra at Adelaide Private Wealth is (as always) that diversification is the key to reducing investment risk and capital losses.
Many investors have enjoyed asset prices moving significantly higher over the last few years. These price rises have continued to the point where many assets in certain geography’s are now fully valued and in some cases expensive. As a result, we feel portfolio diversification has become a crucial element to minimise investment risk and smooth out investor returns over the long term.
The current environment has seen a global collapse in the price of oil which has a flow on effect to Gross Domestic Product, in conjunction with the expected rise in US interest rates later this year we feel infrastructure assets can offer stability for certain client portfolios.
Richard Elmslie, Co-chief Investment Officer at Rare, provides a summary of their current market outlook on infrastructure for 2015.
If you’re not sure whether your portfolio allocation is right for you, talk to us at Adelaide Private Wealth. We can provide expert advice to create and maintain a quality, well-diversified portfolio focused on achieving your objectives whilst keeping unnecessary investment risk under control.