The end of 2022 has brought with it a mini-rally in equities and rising bond prices, as many market participants take the view that we have reached close to the peak of the interest rate cycles.
But the new year is also fraught with risk, as recession looms on the horizon, and uncertainty abounds both on the geo-political front and also in terms of portfolio construction, as advisers and their clients are forced to ponder whether traditional asset allocation rules, such as the inverse correlation between bond and equity prices, remains relevant in a rapidly changing world. At the same time, the impact of the unwinding of QE creates a suite of issues which have not really occurred in previous recorded history,
So is it time to take more risk?
FTAdviser readers can have their say on the topic by clicking on the below link to vote
david,thorpe@ft.com
