Asset Allocators' Soapbox: Where to look next for supported valuations

Excess liquidity has been sloshing around financial markets for several years now and many people – ourselves included – believe this has inflated asset prices to what appear to be artificially high levels. While this has been positive for investors holding risk assets recently, it is perhaps at the cost of future return potential. The challenge for many asset allocators from here will be finding assets that suitably compensate investors for the risks involved. Given this backdrop, we believe an increasingly cautious outlook is rational and that exposure to risk assets favours areas w...