No change, we remain basically fully invested in our MM Global Macro Portfolio with a cash position of just 4%, the portfolio remains heavily skewed towards “risk” which still feels on point for now, our core macro view of rising inflation hasn’t wavered. MM still believes value stocks will outperform growth through the year with our main moves this year likely to be up and down the risk curve as we feel “Fear & Greed” travels too far in either direction – by definition this may only be 2 major moves through the year which is not unusual for a macro portfolio i.e. it’s unlikely MM will change our core view too often.
The bounce in US 10-year bond yields has continued this week but in-line with our “time for a rest” view another period of consolidation wouldn’t surprise however we remain bullish and cognisant that surprises are still likely to be on the upside. This rally in longer dated bond yields theoretically favours the Resources & Banks over the IT stocks.
Today I have updated the 2 ETF’s which are on top of our watchlist although as we said earlier our underlying macro view is unlikely to change more than once a year.
