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Jakobsen: Why I wouldn’t put ALL my money in stocks
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Stock markets around the world have soared in the past year with the German Dax for example gaining more than 25%. But Saxo Chief Economist Steen Jakobsen expects the days of high returns will come to an end once the US Fed starts to hike rates to curb asset inflation and markets realise they have overestimated the impact of the ECB’s QE programme.
Steen Jakobsen says that is why he wouldn’t put all his money in stocks, but prefers a trading strategy based on parity risk, where he has 25% of his investment in stocks, 25% in cash, 25% in fixed income and the rest in commodities.