He added it was “absolutely critical” that investors increase diversification
“In an environment where the risk of recession in major economies is low, generally speaking investors are meant to be long credit risk in a fixed income portfolio.
“In a period of rising rates, you want credit in the portfolio to help absorb the rise in government rates. Being diversified and keeping exposure to credit in this environment makes a lot of sense.
“Secondarily it’s about positioning around volatility events to avoid the losers and find the winners.”
