The golden rule of investing – diversification – can let you down, Cliffe says. In the sixth instalment of a new 10-video series for eZonomics on lessons from the financial crisis, Cliffe examines how “just about everything fell at once” during the downturn. The series of 10 lessons show his personal view.
Is there a smarter way?
“The crisis has been a good lesson in the risks in the credit and property markets,” said Cliffe. “But bear in mind, the next crisis could pop up somewhere else.”
He said the search was on for new, smarter ways to diversify and to protect investments. He added: “Don’t underestimate the value of deposits that have a government guarantee.”