A short watch. 

In the latest in our exclusive video interviews, Simon Hinrichsen, portfolio manager on First State Investments’ multi-asset funds, outlines to Sam Shaw the implications should there be a bond bear market.

He warns that the entire portfolio construction and finance theory of the past 30 years is based on assumptions that equities and bonds are “good offsets” for each other, but that longer-term history proves that this is not always the case.

This is not good news for those reliant upon the traditional 60% equities/40% fixed income asset allocation approach.

Simon also shares where he is putting money, in a time when investors have “very few places to hide” in a low-yield environment, and in making sure you avoid unwanted risks.