Investor complacency: where have all the bears gone?

What a difference a year makes. Twelve months ago, many in the investment profession were postulating about a ‘Grexit’ – or worse – the breakup of the eurozone altogether. Today, that seems a remote possibility, as markets have rallied every month since June 2012. In such conditions, it can be easy to slip into a state of false comfort and wind down our collective alertness. But while it might be getting better, we are not out of the woods yet. That being said, optimism is not a bad thing. The corporate sector is in a reasonably healthy state and many of the major tail risks that were...