Diversification has been described as the one free lunch in investing. True, the interconnected nature of the global economy means there is greater correlation between market movements now than in the past. But spreading your risk across different regions and asset classes remains a crucial part of successful investing.
Part 5 examines Modern Portfolio Theory and the research carried out by the likes of William Sharpe, Eugene Fama and Ken French into the common factors that drive market returns.
When a liquidity crisis struck China's Evergrande Group in the summer of 2021, it shook the global markets. Debt payments by China's second-largest property developer by sales were estimated in the hundreds of billions of dollars, and the company missed several payments. Those missed payments led to downgrades by international ratings agencies, but the Chinese Read More