Diversifying effectively in a divergent market

IN THIS diverging world with increased volatility, investing in the current market environment is increasingly challenging. In addition to geopolitical tensions and falling oil prices, 2014 also saw divergence in central bank policies. Predictions are that 2015 will continue to see uneven economic growth and varying approaches to government policymaking.

In such an uncertain economic environment, it is more crucial than ever for investors to recognise the importance of diversifying, rebalancing and managing risk to get an appropriate balance between risk and return on their portfolio in line with their long-term financial goals.

So what should investors be looking at in this divergent market?