Elise McKay: What’s driving rotation in equities right now

What’s driving the rotation in equities around the globe at the moment?

Pendal portfolio manager Elise McKay points to the evolving flow of money. “The rise of passive, the rise of systematic trading have contributed to an increase of volatility in our market," Elise explains in our latest podcast.

“During the extreme market moves we saw last week, ETFs were accounting for 38% of market volumes compared to a historical average of around 28%.” 

With the market crowding into long-duration growth stocks, any sign of uncertainty in the economy or questions over the easing cycle help drive heavy rotation into cyclicals and financials.

How should investors approach this volatile period? Elise explains in this podcast.

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Find out more about Pendal's Australian equities strategies here.

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*Pendal has a position in the stocks mentioned in this podcast.

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