Macro: It’s all about elections and keeping status quo
- Election optimism and a rally in equities have masked the inconvenient truth about the economy that debt is still growing faster than GDP.
- Central banks are collectively reducing overall liquidity. This, combined with high real rates and significant outstanding debt, will slow down the economy.
- Anticipating a more troublesome Q2 we are reducing our equity exposure and increasing exposure to fixed income and commodities.
Steen Jakobsen,
Chief Investment Officer
