We Are Neutral Equities, But Increased Gold, Cash Allocations, Says Cazenove’s Mui

The video discusses market volatility due to trade tensions, focusing on the S&P 500's reaction to Trump's headlines. Cazenove's strategy involves maintaining a neutral equity position and increasing gold and cash allocations to mitigate risks. The discussion shifts to the dollar's role in trade tensions, highlighting the challenges of US FX interventions and potential currency wars. A weaker dollar could benefit emerging markets, but active currency manipulation might harm investor confidence.

What strategy is Cazenove employing to manage potential market volatility due to trade tensions?

• Maintaining a neutral equity position and increasing gold and cash allocations

• Reducing gold and cash allocations

• Increasing equity positions

• Focusing solely on European markets

What is a potential consequence of the US attempting to unilaterally intervene in the dollar?

• Reducing the budget deficit

• Strengthening the dollar

• Starting a currency war

• Improving investor confidence

What is one reason the US fiscal stimulus is considered dollar negative in the long run?

• It increases the budget deficit

• It strengthens the dollar

• It decreases the budget deficit

• It has no impact on the dollar

How does a weaker dollar typically affect emerging markets?

• Increases borrowing costs

• Decreases global liquidity

• Lowers borrowing costs and boosts global liquidity

• Has no impact on emerging markets

What could be a negative impact of the US actively manipulating its currency?

• Damaging investor confidence

• Increasing global growth

• Boosting investor confidence

• Strengthening the euro