Hugo Thompson

Markets are likely to by choppy but, in our view, there is still money to be made for investors who can hold their nerve. A robust economic backdrop, increased fiscal spending, and room for monetary loosening are all positive for investors. However, increasing policy uncertainty is a risk that must be managed.

Our key positions are below:

• Holding a pro-risk stance: positive view on global equities, listed real estate, and emerging market debt

• Additional diversifiers: gold can provide support during geopolitical uncertainty, while benefiting from falling interest rates

• Broadening allocations: broadening US exposure beyond market capitalisation weighting to increase exposure to high quality earners with attractive valuations. Adding to UK equity market given its defensive characteristics

• Cautiously reintroducing bonds: Fixed income valuations look appealing, while the prospect of potential rate cuts encourage us out of cash

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