M&G's Felton: Raise cash to hedge against 'unnerving' calmness

There is a worrying level of calmness in markets at a time when risk levels across the board are rising. Investors should be upping cash now, argues M&G UK Growth manager Mike Felton.

We have become increasingly unnerved by the apparent calmness displayed by financial markets in the West to the unfolding events on the macroeconomic and geopolitical stage. Measures of volatility across bonds, currencies and equities have recently fallen to multi-year lows. For its part, the S&P 500 had until a few days ago clocked up the remarkable record of moving by less than 1% either way on a daily basis for 62 trading sessions. Risk has risen This calmness belies the fact that there is a lot going on under the surface, most of it increasing the aggregate risk profile of the ...