Asset Allocator's Soapbox: David Coombs

Whilst worries over economic growth and earnings persist, and cash yields next to nothing, investors are directionless. In the main, this has manifested itself in the risk-on/risk-off trade. Whilst we believe that high quality equities offer good value at this point, others are still wary of assuming equity-risk. However, are they right to turn to so-called ‘risk-free’ assets when both have the potential for equity-like volatility ahead? Gilt yields have now fallen to record lows as fears of deflation again take hold. At the time of writing, ten-year government bonds are trading at yield...