(Bloomberg) Holding cash is the best protection against bond and stock markets inflated by record monetary stimulus.
That’s the view of Norwegian hedge fund firm Sector Asset Management, which manages $1.6 billion, and holds as much as 50 percent in cash in one of its funds. “What can kill us now?,” Peter Andersland, the 55-year-old founder of Sector, said in an interview on Tuesday at his office overlooking the Oslo fjord. “It’s the correlation between stocks and bonds that will be induced by higher rates. That’s the biggest risk in the capital markets today, not geopolitics or Trump.”
