Why it might be time to take more risks

Short-term volatility, driven mainly by uncertainty over Europe and global growth concerns has dominated markets in 2011. Over the summer, the risks of a global recession occurring were high. While many risk assets, and equities in particular, represented good value on traditional measures such as earnings yield, we were positioned cautiously from a multi asset perspective. However, the risk of a US recession looks to be gradually receding with economic data such as the ISM survey remaining positive and investors could now be rewarded for gradually and incrementally taking on more ris...