Ruffer duo: November sell-off was a 'dress rehearsal' for future asset price shifts

Portfolio 'stress tested' by Trump win

Anna Fedorova
clock • 2 min read

Steve Russell and Hamish Baillie, managers of the Ruffer Investment Company, have described November's bond sell-off as a "dress rehearsal" for bigger moves in asset prices to come next year.

The manager duo said Donald Trump's victory in the US Presidential Election at the start of last month created a "stress test" for the portfolio, which they believe has held up relatively well given this backdrop. The month saw a sharp sell-off in bonds across the globe, with benchmark 10-year Treasury yields jumping from 1.8% prior to the election to 2.4% (currently trading at 2.34%).  This move also triggered redemptions from 'bond proxies', which have been popular with investors as a safer equity investment option, and a reversal into cyclical stocks. Over the month of November,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

'Fundamental shift': Why transparent investing really matters

'Fundamental shift': Why transparent investing really matters

‘There needs to be a concerted shift towards greater openness’

Simon Camilleri
clock 18 March 2024 • 4 min read
Partner Insight: Passive and active — the case for both

Partner Insight: Passive and active — the case for both

Invesco
clock 18 March 2024 • 4 min read
Future of Investment Festival: Secure your place for June now

Future of Investment Festival: Secure your place for June now

A look at how to take advantage of global megatrends

Professional Adviser
clock 11 March 2024 • 2 min read