Portfolio Watch: Time to consider (EUR) bonds?
Hello Everyone and welcome back to our weekly Portfolio Watch where we reflect on the present state of markets and how we see ourselves navigating them in the coming weeks
It’s safe to say that this week has been rather bloody and we imagine there are plenty of longs out there who are left bruised and dry.
We of course have been totally explicit about how stocks have been a minefield to go long since August and while I entertained the thought of a brief comeback on the back of a potential breather at the long-end of the UST curve, it is rather obvious that none of that is really playing out.
The bond market is in a sad state and risk assets struggle to keep afloat and we grace ourselves of having no net exposure to either asset class.
We are currently in the process of thoroughly reviewing our portfolio and are actively considering the inclusion of bonds to profit from the prevailing disinflationary pressures and the overall subdued economic outlook
Chart 1: Rates Heatmap
We barely dare suggest it. But are bonds finally reap for entry on the long side? We are definitely getting there. Read our latest Portfolio Watch below
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