From Vimal Gor at BT:
Central banks central to the action
April was another month which was dominated by central bank events. The Fed and the BoJ vied for top billing with the BoJ ultimately winning out. The Fed has now completed its 180-degree turn since the end of last year and rates hikes this year are now highly unlikely, especially if our view that US growth is now slowing is proved correct. Markets have been incredibly difficult to position in recently as markedly reduced liquidity is resulting in amplified market moves. Whether you are bullish or bearish you are likely to be nursing some battle scars; the volatility and large event risk means that usually stable correlations are shifting markedly. We had a negative performance month on the flagship portfolios, but given recent market moves we have made this all back and more in May so far. We are now approaching the endgame and things are changing.
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