“We’ve seen this month a return to safe haven bond investments because equities have underperformed. When you have a multi-asset strategy in your portfolio it’s easier to play relative asset value and to protect yourself like this and to switch from equities to bonds -- that right now are providing some havens when the volatility is rising.”
Peter Chatwell, head of multi-asset strategy at Mizuho International
Recommends reduce exposure to equity and long duration credit exposure in the first half of next year
“Clearly there’s some downside risks to growth. There’s also further upside risks to inflation in the near-term. The outlook becomes less supportive of risk assets in the near-term.”
Max Kettner, multi-asset strategist at HSBC Holdings Plc
Recommends underweight positions on corporate junk bonds, equities and overweight on the dollar
“The first half of next year is going to be much tougher for risk assets. What we’re advising clients to do is to underweight equities, underweight high-yields, being long on the dollar.”
Kevin Thozet, member of the investment committee, Carmignac
Recommends cash and the dollar to hedge volatility
“We are mainly focusing on visible growth companies with good visibility and have relatively low exposure to ‘reopening’ or travel.”