Fidelity International's Trevor Greetham has cut exposure to equities and commodities in his multi-asset funds in anticipation of greater buying opportunities later in the year and in 2011.
The director of asset allocation has moved underweight in the asset classes relative to benchmarks for the first time in 12 months and says a dip in investor sentiment later in the year could signal the right time to buy. "I have trimmed down the large overweight equity positions in our multi-asset funds with a view to possibly buying during dips later in the year," he says. "Stocks tend to underperform bonds until lead indicators trough and this is unlikely to happen before late 2010 or early 2011 given the usual ebb and flow of the inventory cycle." For the remainder of 2010, he ...
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