Alongside all the prudence, though, a vocal subset of managers has emerged whose outlook is decidedly less wary. Despite the headwinds facing investors at this point in the economic cycle, they say there’s reason to believe it’s still early in the bull run for risky assets.
For Wall Street sceptics arguing the good times can’t last, there is plenty of supporting evidence. Equity valuations are stretched, corporate bond spreads are tightening and gold is at a record.
The result has been a rush to hedges — options and other instruments designed to protect gains already in the books.
