Portfolio planning: Five reasons to be cautious

After a difficult start, most asset classes show positive returns for the year to date. Central bank policymaking has remained the dominant feature in financial markets and has set in progress a giant hunt for yield which has displaced capital into risk assets of all kinds. The resulting flows have created a momentum that has become self-reinforcing. Real economy data, however, remains mixed.  Against this background, we continue to exercise a degree of caution in our portfolios. The following reasons sum up why.   1. Persistently loose monetary policy has increased risk in b...