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The great rotation and the great returns
Just what's going on in the markets and are we really in the midst of what's known as the "great rotation"? Teis Knuthsen, the CIO of Saxo Private Bank believes we are and it's manifesting itself in three key areas. The first is the global economic cycle which is triggering a rise in real interest rates. The second is from bonds to equities. And the third is the rotation from emerging to developed markets.
So how do you play this cycle? Teis believes there's a lot of catching up to do for equity markets relative to bonds. He says that if we can avoid a global economic recession, it's quite likely we'll see equity markets continue to outperform bonds.
He admits that it's possible the equity markets are getting carried away on a wave of over optimism. However Teis says when you look at a whole range of leading indicators, the wheels are turning and that's a reason not to be too negative, at least in the short to medium term.
01:32 minutes
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