Why avoiding risk is a risky business

Investors seeking refuge from the wild swings of the stock market may find that diversification brings unexpected challenges.

After the alarming stock market wobble at the back end of last year, performance in the first half of 2019 provided welcome good cheer, notwithstanding a minor correction in May. But amid concerns about the US-China trade war and the bond market’s yield curve inversion signalling the possibility of recession in the US and UK, markets tumbled again this week.