Foreign.
Hello and welcome to the Bulletin with UBS on Monocle Radio.
Each week, the sharpest minds and freshest thinkers in finance take you beyond the numbers and hype right to the heart of the big issues of the day.
In this week's edition of the program, we're taking a look at UBS Asset Management's flagship thought leadership paper, the Red Thread, the most recent edition of which is a deep dive into diversification.
Now this has long been a central tenet of investment theory.
Think of the old idiom, don't put all your eggs in one basket.
But these assumptions have been sorely tested of late, due perhaps to the dominance of the so called Magnificent Seven tech companies including the likes of Google, Apple and Tesla.
So arguably, if you diversified your equities portfolio, it could result in deworsification.
In this show, then we'll look at diversification within and across asset classes and stepping away from investments, we'll consider why companies haven't really diversified their supply chains despite factors ranging from extreme weather events to the global pandemic.
To examine all these issues, I'm delighted to say we're joined by three of the key figures behind this edition of the Red Thread.
Barry Gill, UBS Asset Management's Head of Investments, Lucy Thomas, head of Sustainable Investing and impact, and Michele Gambera, Head of Strategic Asset Allocation.
Barry, Lucy, Michele, a warm welcome to you all.
Barry Gill, perhaps let's start with you.
So much interesting research here.
Tell me why.
Now to take this deeper dive into the theme of diversification.
To be honest with you, I think it's because we're at this super interesting point in history.
We've got this incredible amount of concentration taking place in equity markets.
Let me just give you a flavor for this.
The most highly valued stock on the New York Stock Exchange today is valued 800 times out of the market.