Greetham cuts risk asset exposure on peak in global growth

Fidelity's Trevor Greetham has cut exposure to risk assets to the lowest level in a year across his Multi Asset range on signs global growth is peaking.

While Greetham still believes the global economy is in  the early stages of recovery on a five-year view, the manager says a ‘mini-cycle’ has developed which could put pressure on equities and other risk assets. Greetham believes global lead indicators are rolling over and the US inventory cycle could be about to turn back down again. “With growth likely to slow into 2011, it is a really bad time to step in with aggressive fiscal tightening and I am worried there is a policy mistake under way in Europe,” he says. “Monetary policy can ease to offset fiscal tightening, but it can tak...