07 May 2020 6 min read

Giving the unlovables a chance

Amid so much uncertainty, crowded positions can be particularly risky. I explain why we are therefore giving unlovable ideas a chance in this discussion on Bloomberg.

We think a lot of investors like the same trades, such as healthcare equities and government bonds. But with so much uncertainty, crowded positions can be particularly risky: if the narrative changes, a lot of people can head for the exit at the same time.

We are therefore looking to give the laggards some love. Within equities, we’ve built a basket of some of the most hated segments; we’re also negative on gilts, despite their strong run.

To find out why we are giving unlovable ideas a chance, take a gander at our latest thinking on Bloomberg.

John Roe

Head of Multi-Asset Funds

With failed football dreams behind him, John applies the same level of enthusiasm to investing and how to improve outcomes by battling behavioural biases. He leads on oil research, but also gets involved in a wide range of macro topics. That love of variety also explains his craft beer fascination. Hard to shut up, he’s a regular guest on Bloomberg, a conference speaker and an LGIM Director. His analytical thinking benefits from being an Actuary with an economics degree and having previously worked as a strategist at RBS.