Beware not to party like it's 1993

LEADER

There is no doubt the ‘risk trade' has been the place to be for investors over the past couple of months.

The challenge has been to work out what that risk trade will be and perhaps, more importantly, how long it will last as market sentiment seems to fluctuate between deflation and currently inflationary pressures. Barclays Capital, in its excellent quarterly report, suggests the current favoured trades – emerging markets equities and gold – may have further to run, at least in the short term of three to six months. For an investor already exposed to gold it is a fairly simple decision to stay on board as the metal reaches new all-time highs or take some profits. For investors attract...