How to protect your portfolio

ON UK GROWTH

Constant changes in market sentiment have been a recurring feature of the past four years as investors' appetite for equities is driven by fear and greed.

Policymakers repeatedly try (and then fail) to come up with an all encompassing solution to the imbalances that have grown up within the global economy, while trying to maintain growth and stable exchange rates.  However, it often seems like they face an impossible task and we must be heading for another economic and market implosion.  Hence investors have flown from any risk assets and headed for the so-called safety of government bonds.  UK equities now yield 2% more than 10 year UK gilts at a time when UK corporate balance sheets and free cashflows are looking strong.  Bearish se...