“Although spreads still have scope to tighten given the strength of the fundamental backdrop, this low-volatility, positive-momentum environment provides an attractive entry point to add some portfolio hedges,” he says. “With elections coming up, and the UK set to trigger Article 50, implementing cost-effective hedges now could help investors protect portfolios from the likely return of volatility to more ‘normal’ levels.”
Nyree Stewart is features editor at Investment Adviser
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