Ryan Hughes

We like to look for areas of complacency and how that is creeping into positioning for possible opportunities to both protect portfolios on the downside or add something that gives them better prospective long-term returns. We feel bond markets are where those opportunities lie at present.

Inflation shifting lower, towards central bank targets, throughout 2024 has led attention in markets elsewhere. In particular, the raft of planned and unplanned elections and wider geopolitical events has generated plenty of headlines and suppositions. That has left inflation somewhat in the shadows and markets unaware of the vulnerabilities and the consequences for nominal bonds.

Our equity positioning remains well diversified. There is no telling how or when this will prove beneficial, but an over concentration of risk can be disastrous.