Time to De-Risk and Shift Into Cash

A safe 4.5% 3-month T-bill yield looks compelling in an increasingly unpredictable backdrop

Highlights

• A safe 4.5% 3-month T-bill yield looks compelling in an increasingly unpredictable backdrop

• Reducing risk across the portfolio is prudent until the policy dust settles

• The BoJ throws cold water on an upcoming rate hike

• The “Trump Trade” turns into the “Trump Fade” just as investors bet on a market melt-up

Key Takeaways

“Trump Trade” Turns Into “Trump Fade”

• The “Trump Trade” has turned into the “Trump Fade” just as inflows into U.S. equity ETFs and mutual funds experience their second biggest inflows since 2008, surprising investors that are betting on a market melt-up after Trump’s victory (fueling a speculative frenzy in the process).