Carlos Mejia

We have resisted making any changes to our asset allocation given the highly charged political calendar and the low visibility. Our overweight to equities and preference to the US has helped us through the year. We did not want to speculate on the result of the US elections or on the way the markets would react. The last equity move we made was to marginally reduce the cyclicality in the portfolios, reducing consumer discretionary to underweight and moving consumer defensive to neutral in anticipation of higher volatility in the run-up to the US elections. We also took advantage of the very low volatility to renew some of the hedges in our portfolios.

This is not the time to have big brave calls on markets given the stage of the business cycle, the influence of central banks and the potential for disruptive political changes in the markets.

What’s Next? The Future, with Bill Gates - Netflix