LGT Capital Is 'Modestly Overweight' Stocks, 'Big Underweight' Bonds

The video discusses the current investment strategy, focusing on maintaining a high cash allocation and modestly overweight equities while underweighting fixed income due to rising rates. The strategy includes shifting towards less volatile, defensive equity segments. Geographical adjustments favor the US over Asia Pacific due to trade tensions and technical analysis. The video also explores the correlation between Chinese currency stability and emerging markets.

What is the primary reason for maintaining a high underweight in fixed income?

• Rising interest rates

• Stable interest rates

• Decreasing interest rates

• Volatile interest rates

Why did the investment strategy shift away from commodity producer equities?

• To reduce overall equity exposure

• To focus solely on oil and metals

• To gain more flexibility in broader equity markets

• To increase exposure to Asia Pacific

What was the reason for reducing exposure to the Asia Pacific region?

• Deteriorated technical picture and trade tensions

• Increased trade openness

• Improved technical picture

• Higher volatility in the US market

How is the Chinese currency perceived in relation to the Chinese economy?

• As unrelated to the economy

• As a measure of global trade

• As a benchmark for economic strength

• As a sign of economic weakness

What impact does currency stability have on emerging markets?

• It leads to increased volatility

• It stabilizes market performance

• It prevents market growth

• It has no impact