A positive economic outlook makes the case for holding risky assets through 2022, in our view, but higher rates are likely to mean higher volatility: we therefore favor a focus on income or “carry” from risky assets, alongside strategies with the potential to withstand price volatility.

"Where do we see the risks? Twelve or 18 months ago, it would have been coronavirus. Now, we regard the pandemic as a disruptive rather than potentially catastrophic risk. Instead, persistent inflation and the potential for central bank policy errors are our top concerns."