Big Question: What is the best way to add risk?

Johanna Kyrklund Head of multi-asset investments at Schroders   With events in Europe casting a shadow over the global economic outlook, investors should be looking for assets which have a valuation cushion and which are liquid. My view is that risk is best added through developed market equities. Corporate bonds offer relatively good value in the yield spread over lower-risk, but expensive government bonds - absolute levels of yield are not so attractive. Everyone remembers the amazing buying opportunity at the end of 2008, and consequently many investors are in love with credit...