Now is not the appropriate time to de-risk portfolios

Despite the world teetering on the brink of possible recession, now is not the right time to de-risk...

Despite the world teetering on the brink of possible recession, now is not the right time to de-risk portfolios, according to Gavin Davies, former chief economist at Goldman Sachs. Davies, now chairman of Fulcrum Asset Management, said the world's central banks still have the power to avert crisis, if they act quickly. Despite the obvious threat of a US recession and the fact house prices will fall by 5%-7%, he said the time has not come to remove risk from allocations. "I am not ready to conclude the inflection point is here yet," Davies said, noting hedge funds that had not taken on hig...