We Maintain Our Underweight on U.K. Assets, Says Brooks MacDonald’s Deputy CIO

The transcript discusses the impact of Brexit on the UK market, highlighting the uncertainty surrounding Boris Johnson's strategy and the potential for a general election. It emphasizes the importance of asset allocation, focusing on large multinationals with currency hedges. The discussion also covers the volatility of the currency market and the strategy of holding cash, particularly in US Treasurys, to mitigate risks. The overall tone reflects caution due to Brexit fears, Federal Reserve mismatches, and concerns over the European economy.

What is the key phrase associated with Boris Johnson's Brexit strategy?

• Do or die

• Stay or leave

• Now or never

• All or nothing

What event is considered likely if there is an extension to the Brexit deadline?

• A second referendum

• A general election

• A trade deal with the EU

• A leadership change

What is expected to remain a 'punching bag' due to the high uncertainty?

• The bond market

• The currency

• The housing market

• The stock market

What type of US financial instrument are investors starting to buy?

• Corporate stocks

• Short-dated US Treasurys

• Long-term bonds

• Real estate

What percentage of cash is held in a balanced fund as a sign of caution?

• 5%

• 10%

• 8%

• 12%