Standard Life Investments is increasing its exposure to cash while waiting for better prospects in the equity markets later in the year. It believes the dollar has entered a period of weakness and that investors are generally looking for more diversification.
Standard Life Investments global investment strategist Ken Forman says: “Over the last couple of months we have reduced the risk of exposure to the dollar and the equity markets in our house view and increased the exposure to cash. We have reduced the degree of heaviness in UK equities and moved US equities down to neutral. We are still heavy in equities overall and we still expect to be rewarded for this over then medium term.”