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To rebalance or not to rebalance

A new universe of investment classes and intra-market relationships have changed the spectrum of risk-reward.

The US equity market, in particular, has seen the biggest change in the risk-reward trade-off for equity. The ratio has become nearer that of bonds - ie 1:1 - in the last 10 years. This has influenced the aggregate global developed markets in a similar way.

THE question of whether to shift allocation from equity to bonds is one that invariably comes up as often as the S&P500 achieves a new high.

But is this the right question to ask? I would say that this question, like everything else, needs to evolve.

Looking back, 2017 was a

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