Holding cash long term is uncomfortable, but this is a time for patience

Uncertainty about what Trump may do

When it comes to asset allocation it is difficult to avoid discussing the potential impact of America's President-elect.

The challenge for all of us is weighing what Trump will do against what he said he would do. Can he cut taxes drastically and launch a $1tn infrastructure programme? Can he make the US more inward-looking and still tackle ISIS? Will tearing up trade agreements actually help the economy grow beyond the short term? Assuming historic economic principles still apply, there will have to be compromises - instances where, for example, a wall becomes a fence. RWC income team keep high cash weighting but 'optimistic' profit warnings will create opportunities US treasuries have proven a usef...