Stable fixed-term investments offer a safe haven from the volatility that has characterised local and international markets in 2018. These options should therefore appeal to investors pursuing a longer-term strategy, particularly given the comparable returns on offer from fixed-rate deposit accounts and a growing number of innovative alternative investments. "Diversification should remain the underlying philosophy of any long-term investment strategy. However, divesting from specific asset classes due to poor performance to invest in other options would be a mistake," says Fedgroup CFO Sheldon Friedericksen. "It would be more prudent to rebalance portfolio allocations in 2019 by shifting contributions to specific assets that offer opportunities for guaranteed returns." Based on this approach, down-weighting allocations to equities in 2019 would insulate long-term investment portfolios from the impact of a potential stock market shock or correction.

"The recent slump in the val...

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