21 June 2016 at 13:23 GMT
How best to deal with zero or even negative interest rates? This is a unique situation, but according to Saxo Bank chief economist Steen Jakobsen, there are several ways to play the negative yield curve.
Jakobsen is overweight US fixed income. He thinks that the Federal Reserve is impairing the capability of the US economy to heal due to its efforts to hike interest rates. In particular, he thinks that the 30-year Treasuries are attractive.
Jakobsen is also looking at gold. It has zero carry and remains a go-to safe haven currency.
Finally, there are also a lot of undervalued stocks that Jakobsen likes. He is favourable to the mining industry, pharma and the technology sector.
Overall, he thinks that it is important to be extremely defensive.