A short note on portfolio positioning.
We’ve got a sizeable underweight to the US, around 15%. US equities have done incredibly well, US exceptionalism is a thing, even if no one quite knows what anyone else means by that when they say it, and we had been very exposed to US equities for many years.
However, everything has a price, and we’ve been allocating towards other regions on valuation grounds, particularly after market dislocations (e.g. adding to European equities after the first few days of the RUS-UKR war, Japanese equities after the near collapse of the Yen).
(Note – we did recently add to our overall equities exposure, including the US, when the S&P 500 joined the rest of the world in bear market territory, but the point of the note is the broader regional positioning, made up of small overweights to regions ex-US, rather than our very latest trade.)
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