In recent weeks, some commentators have speculated about a return of a ‘great rotation’ in institutional and retail portfolios as investors sell out of bonds and move into equities – markets have remained buoyant despite the shock result of the US election and events across Europe this week.
According to Bank of America Merrill Lynch, $27bn globally was invested into equities in the first week after Trump’s victory, while bonds saw their biggest outflows for over three years at $18bn.
Hambi said he has also witnessed this trend within the past two months, for the first time in years.
“We have seen a start of a great rotation, though I don’t know if it’s a false dawn, but it could happen,” he said.
“It has been happening in Japan over the past couple of years, but in the past two months we’ve seen it start to happen in the rest of the world.”
Unlike many of his more cautious peers, Hambi is currently “pro growth assets” with positive views on US and Japanese equities, while also favouring certain absolute return strategies.
