Low-risk sectors increasingin importance

Following the dramatic falls in equity markets over the past three years, accounting scandals and problems with zeros, confidence in stock markets is poor and low-risk investments such as gilts and money market funds look set to benefit

There was a time when investors had it all: double-digit returns, stratospheric dot.com prices and remarkably bullish markets. Investing seemed easy and people were prepared to take enormous risks to net immense returns. Consultants were paid in equity rather than cash and high fliers ignored salaries and bonuses for share options. Now the investment market has grounded with a bump. The current recession has seen equity markets plunge, driving investors into bonds. With limited issues, this has diminished the quality of bond markets, leading to falling bond fund values. Pension scandals...