Kleinwort Hambros' CIO Allocating More Into Cash, Short-Term Bonds

What was surprising about the market conditions before the recent increase in volatility?

• The long period of low volatility

• The rapid increase in inflation

• The sudden drop in liquidity

• The unexpected rise in interest rates

How did the volatility in February affect different asset classes?

• Only equities were affected

• Only bonds were affected

• Commodities were the most affected

• Both equities and bonds experienced volatility

What is a more prudent way to approach volatility in a portfolio?

• Trade it outright for investment returns

• Focus solely on short-term gains

• Use it for hedging and diversification

• Ignore it completely

What is the current economic environment described in the video?

• Unpredictable and volatile

• Declining with low returns

• Strong with robust earnings

• Weak and unstable

Why is it important to be cautious with investments despite strong economic fundamentals?

• Because of political instability

• Owing to high inflation

• Because of low interest rates

• Due to excessive valuations