“A year ago, we were telling people to buy bonds when the 10-year was yielding 3%. That turned out to be a good move. We still think that’s the best place to be – in fixed income. And we think intermediate and long-term bonds have more upside,” he says. “It’s a good place to be.”
Also he suggests establishing long position in utilities and telecom stocks.
Bodurtha's thesis is simple: he believes that weakening economic growth overseas as well as a diminished appetite for risk after the financial crisis, will quickly send investors into risk-off mode.
“We’ve got a challenged situation. The developing world is weakening a lot, that’s a key focus,” he says. “And risk appetite has dialed down. That’s why we like defensive plays – in both bonds and selective areas of the stock market.”
* Citi Private Bank works with one-third of the world’s billionaires overseeing $250 billion in assets under management.
Posted by CNBC's Lee Brodie
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