Simon Evan-Cook: Pick your battles

Back in October, before the whole ‘reflation' brouhaha kicked off, we had been warning that a whole ‘reflation' brouhaha might be about to kick off. Having spotted the nascent trend - and been fairly fortunate with our timing - it is fair to ask: should we have bet the house on the reflation trade? We don't think so. We were happy to tilt towards reflationary assets, as that is where the risk-reward trade-off was more attractive. But there was no guarantee reflationary forces were going to win. So we thought our stance - best described as a ‘best of either deflation or reflation, but wit...