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There is an endless list of risks for investors to consider. But if we acted on every one of them, we’d never stay invested. To help isolate the key risks to consider in the current market, we asked two fund managers what's keeping them up at night right now. Ben Clark from TMS Capital says it’s bond yields that worry him most; “bond yields affect the price of everything, but particularly in large caps.” For small caps, Dean Fergie from Cyan Investment Management says that it’s investor sentiment that drives the share prices. Tune in below to hear their thoughts on the biggest risks in the market, and how to mitigate them.

Key points:

  • Investor sentiment is the biggest swing factor for small caps
  • Bond markets present the biggest risk for larger stocks
  • US 10-year yields have increased by 70bps this year, but this reflects a stronger economy
  • Avoid stocks with stagnant yields or earnings, especially if other shareholders are on the register for the yield
  • ‘Don’t be greedy’ is the most important rule in small caps – don’t let your positions sizes gets out of hand


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