Time to be defensive, says Fidelity’s Trevor Greetham in webcast
Trevor Greetham, portfolio manager of Fidelity’s Multi Asset funds, argues in a webcast that things must get worse before policy makers take the steps necessary to turn the business cycle.
Since the financial crisis hit five years ago we have been stuck in a period of short, boom/bust economic cycles with the upswings very much reliant on stimulus from central banks. It’s a time when diversification across a broad range of asset classes including government bonds and gold works extremely well. It is also a time where there are opportunities for tactical asset allocation.
I am hopeful central banks will ease soon because inflation is dropping but the markets will probably need to pressure policy makers to act aggressively. In the meantime it makes sense to be defensive.
Click here to hear Greetham’s full webcast