What is the best hedge against a hiking Fed?

Japanese equities have earned themselves a reputation over the years as the market everyone loves to hate, writes Trevor Greetham, head of multi-asset, at Royal London Asset Management.

However, a negative correlation between the Nikkei index and the yen exchange rate acts to dampen some of the market's notorious volatility for UK-based investors, and Japan has a very useful characteristic.  Japan prospers when the Federal Reserve raises rates, a scenario likely to prove challenging at times for a wide range of asset classes. Once November's rancorous presidential election is out of the way this week, attention will quickly turn to the prospect for higher US interest rates. Markets attach a roughly 60% probability to a hike in December and we would see this as the ne...