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.