# Is a new era of portfolio protection reshaping how investors think about risk?

- Link: https://www.directorstalkinterviews.com/is-a-new-era-of-portfolio-protection-reshaping-how-investors-think-about-risk/4121233799
- Published: 2026-01-07T12:20:00+00:00
- Author: Amilia Stone

There is a growing sense that the foundations of portfolio diversification are shifting
in ways that investors can no longer ignore. Jasmine Yeo, an investment manager 
at Ruffer, argues that while diversification remains essential, its most trusted
components are not behaving as they once did. In particular, the assumption that
government bonds or the US dollar will reliably offset equity risk has come under
pressure, especially in moments of broader market stress.

In recent years, periods of market turbulence have exposed correlations that previously
appeared negative but are now proving less stable. When both equities and bonds 
fall in tandem, the classic 60/40 allocation offers little shelter. This has raised
questions about whether traditional safe havens still serve the function investors
expect. Rather than relying on a fixed toolkit, Yeo advocates for a more flexible
approach, one that draws on a broader set of assets capable of performing in unfamiliar
or adverse conditions.

Commodities have come back into focus, not just as an inflation hedge but as a structural
diversifier in an environment where geopolitical risk and resource constraints could
become more influential. Alternative strategies are also gaining relevance. These
are not simply risk-off tools, but sources of uncorrelated return that can enhance
portfolio resilience when markets behave unpredictably.

_**Ruffer Investment Company Limited** (LON:RICA) is a British investment company
dedicated to investments in internationally listed or quoted equities or equity 
related securities_

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