John Stopford of Ninety One Asset Management is reducing exposure to stocks and riskier debt due to complacent markets not preparing for a potential US asset selloff from Trump policies. He sees uncertainty in stocks and bonds, suggesting risk of a significant setback, potentially triggered by the Federal Reserve’s leadership uncertainty.

Key volatility gauge in S&P 500 at lowest since December, stock markets at record highs. Trump’s tariffs may spur inflation as importers pass costs to consumers, job market weakens. Stopford cautious on US debt, prefers UK, New Zealand, Australia. Options provide cheap exposure in uncertain markets.

Stopford’s defensive fund has 7.5% stock exposure, lowest ever, and added sovereign debt. Fund returns around 5% YTD, outperforming peers. Cautious on US Treasuries due to expectations of rate cuts. Prefers UK, NZ, Australia debt. Options provide coverage against negative market events in high uncertainty.

Read more at Yahoo Finance: Ninety One’s Stopford Says US at Epicenter of Market Risk