Throwing caution to the wind?

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Demand for capital at risk structured products has risen 160% in three years, despite continuing uncertainties around the stock markets. James Harrington, head of Business Development, Platforms & Distribution at Legal & General considers what this says about investor risk appetite

Greed & fear. A term that has been used for many years to express the drivers of stock market returns and business behaviour. It is the term I always use when any of my friends or associates, at least those not involved in financial services, ask me why markets are going up at a particular point in time or, alternatively, going down. It avoids any lengthy financial analysis. In the retail structured products world, many people appear to assume that there is only one type of investor who would choose to invest in something that potentially gives up growth (in the form of dividends or inde...

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