Newton IM Boosts Cash Weighting to 28% Amid Geopolitical Risks

The video discusses the impact of global and political risks on market sentiment and investment strategies. It highlights the challenges of aligning portfolios amidst geopolitical tensions and the limitations of traditional hedging with government bonds due to negative interest rates. The speaker suggests an absolute return strategy with increased cash weighting to buffer uncertainties.

What is one of the main factors contributing to the increase in risk premiums for investing in risky assets?

• Rising global GDP

• Falling iron and PMI's

• Decreasing inflation rates

• Stable political environment

How significant is the Middle East's impact on global portfolios according to the discussion?

• It has no impact

• It is a major factor

• It is not a huge part

• It is the only factor

What is a major concern for investors regarding global growth?

• Rising employment rates

• Stable interest rates

• Geopolitical tensions

• Increasing commodity prices

What traditional hedging strategy is becoming less effective due to negative interest rates?

• Real estate investments

• Government bonds

• Stock market investments

• Cryptocurrency

What strategy is being used to buffer against market uncertainties?

• Increasing cash holdings

• Increasing real estate holdings

• Investing in high-risk stocks

• Reducing cash reserves