Robeco Asset Management Podcast Market Flash – It’s too early yet to add risk
Apr 7, 2025
Colin Graham, Co-head of Investment Solutions at Robeco, shares his expertise on current market challenges from London. He discusses the indiscriminate selling trends among hedge funds and how this fuels market volatility. Graham highlights the impact of recent U.S. tariff hikes and the plummeting effectiveness of traditional investment strategies. He emphasizes the shift toward safer assets like bonds and the need for strategic diversification. Additionally, he touches on navigating commodity markets and the value of maintaining a long-term investment focus during downturns.
AI Snips
Chapters
Transcript
Episode notes
Market Impact of Tariff Hikes
- The US administration's tariff hikes are a structural break, invalidating previous market models.
- Current market conditions would typically signal adding risk, but the changing landscape demands caution.
Portfolio Management in Uncertain Times
- Reduce risk to neutral in portfolios and add hedging.
- Wait and see how things develop before adding more risk.
Broad Market Decline and Hedge Fund Selling
- The market decline is broad-based, impacting tech, banks, and other sectors due to recession fears.
- Indiscriminate selling is occurring as hedge funds face margin calls and liquidate assets.