The prospect of a new US president has sparked a new wave of investing themes in global markets. However, wealth advisers are cautious about recommending funds with concentrated portfolios to ride the trends because of the heightened volatility. What should investors do?

Donald Trump’s election victory earlier this month was not the only surprise for fund managers and wealth advisors. Many were also caught wrong-footed by the way the market reacted.

“In a way, we had been hedged for a Trump victory but the hedge only seemed to work for less than a day. Everything then reversed quickly, which took us and a lot of other people by surprise,” says Daryl Liew, head of portfolio management at REYL Singapore. “That led us to re-evaluate a number of our investment calls in the past couple of weeks. This meant that, effectively, we have had to adjust our portfolios because of the strong rotation in markets.”

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