If rates are starting to point upward, and money continues to leave the bond-proxies and the market cap-weighted indices, it will likely go into stocks that are smaller, or more overlooked, and attractively priced. We are well-positioned to take advantage of renewed investor interest in those kind of stocks. This is one of the main points in the latest quarterly report from our value shares team.
The report also focus on Brexit and predicts that over the coming months, and indeed years, there will be moments where concrete news flow related to Brexit negotiations emerges, triggering volatility as the market attempts to price it in. As we noted previously, for the EU the dilemma is that a harsh settlement benefits nobody, while a generous settlement may encourage Eurosceptic movements in other countries.
Read the Quarterly report - Click here