AS I write, two of the major issues that have weighed on risk markets for what seems an eternity – Brexit and the trade war between the US and China - look close to some form of resolution. It is hard to stay current.

Suffice to say that with numerous reports highlighting that investors remain cautiously minded and defensively positioned, good news on either risk or any subsequent relief rally could be very strong, especially after the easing of monetary policy across the globe seen this year. Christmas could come early.

Investors are fond of expressing a stylistic preference to their equities holdings. Most commonly, tilts favour growth stocks, which deliver sustained and good earnings growth, and value stocks, which appear cheap.

Recent years have seen a proliferation of other selections, including minimum risk stocks, which are chosen for their low aggregate price volatility, momentum stocks, which show an upward trend over periods of three to 12 months, and quality stocks, which deliver a higher return on capital with low levels of debt.

For most of the past ten years, performance trends in these styles have been stable. Stocks exhibiting positive price momentum have outperformed by more than 30 per cent, with quality stocks not too far behind at 25% .

Although over the period value (-13%) was best avoided, investors have recently warmed to these stocks sensing that their faith in buying cheap stocks was finally being rewarded.

One prominent value investor recently suggested that cheapening valuation ratios have been the biggest barrier to better performance. Dividends, earnings growth and rebalancing have, combined, been competitive but just overlooked.

Without any catalyst to think otherwise and no major new opportunities emerging, investors have rotated into quality and growth stocks and sold down cheap ones judged to be going nowhere.

Proponents of value investing are quick to observe that with relative valuation rates currently lower than at any time since the dotcom bubble, a rebound has been due for a while. Two scenarios could drive such a rerating: a harsher assessment of the outlook for high-growth stocks or higher levels of nominal economic growth that improve general trading conditions.

The bounce in value seen in the summer was catalysed by signs that Presidents Trump and Xi were prepared to pull back from the trade-war brink. To that extent, recent developments will be supportive of the value rally continuing.

Equally, hopes that a Brexit precipice will be avoided are also helpful. With these two boosts coupled with fiscal loosening, UK stocks look well placed to celebrate most and value stocks should lead the way.

However, markets need to be wary of getting carried away. The world remains profoundly disinflationary and while the trade war has undoubtedly catalysed a sharp and worrisome weakening in global manufacturing, the global economy was already slowing.

Acute concerns around European growth will remain unless Germany relaxes fiscal policy sharply. Anyone who thinks that things are fine should think about the $14 trillion of global bonds standing on negative yields.

Investors should also remember that there are many in Europe that see the interests of the union best served by ensuring the UK has an uncomfortable Brexit. Even if an EU exit deal is found, there is still a trade deal to be negotiated and that will not be easy.

Experience has also shown that sentiment around trade can sour quickly on a single tweet and there can be little doubt that the US and China are locked into a contest for global dominance that is set to last for many years.

Squeezed out of their cautious positioning over the winter months, equity investors might help markets soar into the year-end.

The likelihood is that they will be setting highs that could last for years.

Stephen Jones is chief investment officer at Kames Capital.