BlueBay's Kettle: 'Narrow window' to reposition portfolios before Q4 rally

'Choppy market conditions' ahead

There is a “narrow window” for investors to reposition their portfolios ahead of an anticipated rally into the year-end, according to BlueBay’s Anthony Kettle, who said many investors are now in “wait-and-see mode” in the run-up to the US Election.

Senior portfolio manager Kettle said markets are becoming increasingly nervous, which has led to risk aversion. This can be shown through "a tough week" for equities this week, with European and emerging market indices down by more than 4%, and the S&P 500 having fallen 63 basis points.  In total, the S&P 500 has suffered month-to-date losses of 5.77%. Kettle believes there are two factors exacerbating market fears: the "continued impasse on the fiscal side" in the US, and the "growing realisation the US Federal Reserve is struggling to form a clear consensus" on how to implement its inf...