Think you’re well diversified? Think again
Livewire Markets Keith Ford spoke with Talaria Co-CIO Chad Padowitz recently about the current level of correlation across most asset classes to the US S&P500 index.
“In the mid-1990s, you had about 26% of global invested assets meaningfully correlated to the S&P. Three-quarters of other assets you had were giving you a fair amount of diversification, so you had quite a lot of choices to make to construct a diversified portfolio,” Chad says.
“But for a range of reasons, that correlation has moved to around 90%, which is quite extraordinary.”
Chad Padowitz is the Co-Chief Investment Officer of Talaria Asset Management. He has more than 25 years’ experience in the financial services industry in the UK, South Africa and Australia.
His experience includes working as an analyst in the treasury department at HSBC Bank in London, in derivative reporting and analysis, and as an equities research analyst at First National Bank in South Africa.
Chad holds a Bachelor of Commerce from University of the Witwatersrand (South Africa), is a Fellow of the Financial Services Institute of Australasia and is a Chartered Financial Analyst charterholder. Chad co-founded Talaria Asset Management in 2018.
