Contrarian: The importance of being honest

As I survey the market, and especially fund flows, Roman poet Horace's famous maxim springs to mind - "if possible honesty, if not, somehow make money".

Two key challenges, both based around being honest with investors, seem to me hugely important for financial advisers. The first is, sooner or later, investing in bonds of any shape or size, duration risk, government and corporate, will become a foolish, even capital-destroying event. The second, perhaps even more daunting challenge, is investors need to recognise not quite everything central bankers tell them is evident, politically-inspired poppycock. When the central bankers say taking some risk really is the safest thing to do for most investors, they might actually be talking goo...