Raising cash in portfolio amid market uncertainty: Janus Henderson's Richard Bernstein

• U.S. economic fundamentals, including corporate profits and employment, remain reasonably healthy with no signs of recession.
• The war and higher energy prices are creating an inflation spiral, reminiscent of the 1960s/1970s, acting like a dramatic and fast Fed rate hike.
• Portfolio adjustments include raising cash for uncertainty and remaining overweight short-duration equities (dividends), gold, and shorter-duration higher quality fixed-income.
• Small-cap value stocks are favored as 'canaries in the mine shaft' due to their operational leverage, indicating a preference for economically sensitive but fundamentally sound companies.

Richard Bernstein of Janus Henderson Investors discusses his market positioning amid the ongoing 'tug of war' between healthy U.S. economic fundamentals and the inflationary pressures from the war in Ukraine. He maintains a healthy equity portfolio but has raised cash to mitigate uncertainty, emphasizing a focus on short-duration equities, gold, and shorter-duration high-quality fixed income.