The ending of QE ends will lead core bond yields to move structurally higher. This will make bonds less useful for portfolio hedging purposes.
11.01.2019 | 09:30 Uhr
Central bank tightening fuels volatility
Bonds no longer good hedges
What’s in the price?
Strategically neutral equities
Underweight fixed income
Underweight core bonds on expectations of gradually rising inflation and monetary policy normalisation
Aiming to be tactical
With more volatility expected, we seek to be ever more tactical and reactive around our main structural proposition
Exploiting asymmetries to hedge and diversify
We continue to hold positions with asymmetries to our scenario analysis
Download the full report: Asset Allocation Quarterly