Ruffer’s latest review makes a direct case for caution. The firm argues that investors are operating in a market environment where familiar assumptions may no longer hold, particularly around inflation, interest rates and the behaviour of bonds and equities during periods of stress.
The central message is that portfolios built for the previous investment cycle may be exposed to risks that are now more visible. Ruffer points to a world in which inflation is harder to control, policy decisions are more difficult to predict and asset prices remain vulnerable to shifts in confidence.
Rather than relying on market momentum, the firm is focused on resilience, liquidity and the ability to respond when conditions change. That means holding assets that may help offset losses in more conventional parts of a portfolio, while avoiding overdependence on areas that have already benefited from years of easy money.
Ruffer is arguing for a more disciplined approach to risk, where capital is allocated with a clear understanding of what could go wrong and how quickly market conditions can move.
Ruffer Investment Company Limited (LON:RICA) is a British investment company dedicated to investments in internationally listed or quoted equities or equity related securities
