Although that might be a cautious view, he said, it feels right given the number of uncertainties.
With such lack of clarity and visibility, it is important to stay relatively neutral, which in Rathbones’ case means using its risk budget fully, because there is a possibility that markets shoot up if inflation comes down quite quickly.
“After the year that we’ve had, we will want to participate in any potential relief rally.
“However, it also means being aggressive in taking profits on big ‘risk on days’, and hence lately we have been building up some cash in our portfolios by taking profits in the recent equities rally and in gilts as well.
“Our key is to participate in a recovery as our investors may not thank us if they miss out.”
sally.hickey@ft.com
