Teis Knuthsen, Chief Investment Officer for Saxo Private Bank, explains why he's shifted his allocation model to now being neutral between bonds and equities. It's the first time in a year that his allocation has changed and the decision reflects current global risk. Teis says: "Our business cycle model has shifted from an economic expansion to a slowdown. These periods normally see positive but modest returns, where equities often fail to yield higher returns than bonds. In a bigger picture, what matters is whether we move back to an economic expansion or whether we fall into a recession, but slowdown are good points to reduce your overall risk exposure somewhat."

Teis is still bullish on the outlook for global equities but, as he outlines, he believes the world is going through a "tactical soft patch".