Risky assets: no fun run

Odds are the winner of Sunday's London marathon will be one of the top five Kenyan runners. However the race might be won by Martyn from North London. It is a long shot, with crazy odds, but what a payout if it happens. Tempted?

For investors looking for a long shot, Greek July 2017 bonds offer a hefty 25 per cent yield, assuming Europe's finance minister can come to an agreement soon. In this low-yield world - someone has been buying - yields are down from a midweek high of 29 per cent.

What else might the risk-loving yield-hunter consider? Risky US dollar denominated bonds are an option. Ukrainian November 2016 bonds yield 64 per cent. Like Greek bonds, these involve a stark bet on European political relationships.

Beyond bonds, equities offer two flavours of risky bets. Expensive or cheap. Sky high valuations offer a chance on an unproven new star. Buy the tech buzz with Etsy at a price of 217 times forward earnings, however that is a lot of macrame sock puppets. Buy the Chinese dream with any of the more than 60 stocks on the Shenzhen and Shanghai stock exchanges with p/es above 80. They might deliver. Or not.

Or choose an ultra low p/e stock - a cheap bet on an injured runner. Taiwanese real estate developer Radium Life Tech (at 1.5 earnings) might rebound if it can settle with the state and obtain new projects to reverse its 90 per cent revenue drop.

A punt on a long shot can be a rush but it is critical to have enough to pay the bookie to keep your knees intact.

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