Justin Braitling of hedge fund Watermark says investors are getting complacent right as we are approaching a major turning point in this recovery cycle

Justin Braitling of hedge fund Watermark says investors are getting complacent right as we are approaching a major turning point in this recovery cycle. The risk of buying equities is climbing as shares become increasingly fully valued. Unfortunately even the defensive sectors look vulnerable because they have led most of the recovery. While investors are becoming more comfortable with owning shares, we fear that this is turning to a level of complacency, Braitling said. Five years into a bull market, this should be a time to be more nervous of owning shares but the opposite is actually the case. Recognising this trend, we would be looking to retain the majority of our capital in cash in the medium term, valuations are very full. Watermark is currently holding 45% in cash.