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Rob Noble-Warren, asset manager at Independence Wealth Management, suggested that it is better to look at completely different investment options, such as commodity or forex trading and equities.
He noted that markets do not move in the same direction at the same time unless there is a "compete crash".
"Let's say you're talking to a day trader whose based in Ireland so they're looking at the UK and American markets and [looking to] diversify into the UK and US.
"That's not really a diversification because these two markets tend to go together," Mr Noble-Warren asserted.
He concluded that those that hedge their bets by investing in a variety of markets are less likely to suffer major dips in their fortunes.
Investing in the stock market and foreign currency may be increasingly attractive to Brits in light of figures from the Alliance Trust Research Centre, which revealed that in August 2011, inflation rose for nearly all age groups.
Posted by Clive Arneil
