'I am surprised at the market reaction to current geopolitical risk'

‘I am surprised at the market reaction to current geopolitical risk’

Barclays Wealth's Jaime Arguello tells Julia Rampen why he is backing Japanese growth, how he is positioned in EMs and why geopolitical risk has not sparked a more pronounced sell-off.

Which regions do you like at the moment? In terms of equities, earlier this year we took profits on the US, particularly small caps, which did very well and became quite expensive. We managed to get out before the sell-off. I started to reduce positions at the start of 2014, and I reduced it even further in March. We are increasing allocations slightly to the UK, on the income side, and we have maintained our allocations in Europe and emerging markets. We did not reduce emerging markets at the start of the year, so we suffered a little but recovered. In terms of rotating into the more...