Ruffer cuts bond and equities exposure after 'complacent' market rally

November factsheet

The Ruffer Investment Company has cut exposures to bonds and equities, following a November rally that fuelled the managers' expectations that the markets are becoming complacent.

In the trust's monthly investment report, managers Duncan MacInnes and Jasmine Yeo said that high equity valuations, tight credit spreads and low volatility "suggest complacency may have returned to financial markets". Ruffer boosts portfolio duration in October after US Treasury rout "There is a path for policymakers to pull off the magic trick of raising interest rates aggressively without derailing the economy, but we see an obvious vulnerability should events deviate from this narrow route," the managers wrote. "Policy changes feed through with a lag and the initial signs of a ...