Borrowed time: Why this investor is waiting for a correction

Equity markets around the globe are near - or at - record highs, with sentiment remaining positive, but Chris Wyllie at Iveagh argues investors need to be prepared for a setback after such a strong run.

There seems to be a general uniformity of view among market commentators that 2014 will be another good year for stock markets, despite (or because of?) the very strong returns in 2013 This is coinciding with low levels of implied volatility which suggest investors do not see much need to hedge their portfolios. Meanwhile, it is getting harder and harder to refute – although some still try – that US equities are pricey. This is the sort of evidence which starts to build a case for a more defensive stance. It is pretty obvious markets are due a setback, and we have been commenting o...