In the short term, there is always a degree of volatility – and uncertainty. But if you look over the longer term, the highs and the lows get smoothed out into a gentle climb.

As the chart shows, we get dramatic market selloffs every few decades, and they vary in size and scale, but the bull runs far outpace the bears. In short, there are more ups than downs, both in frequency and magnitude.

For decades, as rates and yields fell, bond prices rose, and the fixed income asset class was a reliable hedge for riskier assets like stocks. But as inflation has returned so interest rates and market volatility have risen with it.

Looking ahead, there is little to suggest that the world is about to become much less volatile - geopolitical tensions are high and rising; increased tariffs could lead to higher inflation in the short term, while replacing fossil fuels will be difficult and expensive over the long term; and forces like ageing populations, deglobalisation and increased protectionism could slow down growth.

In such a complex landscape, experience matters, as does an active approach. Find out how our investment managers are thinking about the current opportunity:

Few would disagree that diversification is a key component of any successful investment strategies, but there are a myriad ways to achieve diversification and, knowing which ones to use when is vital.

Read more about an approach to assessing risk that has fallen out of favour in recent years, but which may well be making a come back.

Get in touch with our solutions team for a bespoke portfolio assessment