The markets are at the beginning of a major rotation from defensive equities to cyclical stocks, as fixed income markets and bond proxies get hurt by tighter monetary policies and falling liquidity, according to Pictet Asset Management's multi-asset team.
Pictet's Andrew Cole, one of the multi-asset trio that moved to Pictet AM from Barings in 2014, along with Percival Stanion and Shaniel Ramjee (all pictured), said the rotation into cyclical assets seen in the latter half of this year is likely to be a long-term trend. Cole said: "There is a bigger market shift taking place, this is the start of a major unwind in the market. There is a tailwind to this cyclical trend, it has the potential to go a long way." His colleague Ramjee added: "Liquidity is falling away, and bonds will suffer, so we felt we should walk away from everything tha...
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