Market volatility has picked up, but as multi-asset investors we must be careful about derisking too much or too often. Otherwise we risk missing out on upside for our portfolios. Given cyclical inflation pressures and quantitative tightening, the risks are higher in 2018, but as long as we remain confident in the fundamentals we'll remain invested and try to dance to this different tune.
We're currently in a Goldilocks environment - not too hot, not too cold. How long can this last? Structural forces are depressing inflation but cyclical pressures are intensifying. Even if the microwave is less powerful than before, if you keep zapping the porridge for long enough, surely it will eventually overheat?