Octopus' Wallin: Risk assets still attractive

QT a big risk

The themes that dominated in 2018 look set to continue into 2019; namely concerns over slowing global growth, the ongoing trade spat between the US and China, Brexit and EU politics, among other things.

Against this noisy geopolitical backdrop central banks, led by the US Federal Reserve, are also moving to tighten monetary policy. This has created a very tricky environment for investors and it does not look like this is easing up anytime soon. Equity investors have arguably buckled ahead of the actual market fundamentals, which still remain positive. Such corrections may not have been seen for a while but they are not wholly unusual.  As a consequence, risk asset valuations are more attractive than they were this time last year. Further uncertainty and associated volatility ar...