Events over the past few years have left little doubt in all our minds: The world is becoming very small. Our portfolios are increasingly embedded in the very fabric of the modern world. Investors now share risk on an unprecedented global scale.
Global events can have a ripple effect on global financial markets, and ultimately investors. The rate-rigging scandal that engulfed global banks, the disastrous fire in Bangladesh, the global mobile phone wars and the emergence of the developing countries as investment powerhouses can impact investors’ risk appetite and asset allocation mix.