Friday, 8 March 2013

March – Too easy!

  • The valuation gap between Europe and the US has tightened since Draghi’s “whatever it takes speech”.
  • The European overweight has been reduced to inline.
  • We have upgraded Japan. We rate the authorities’ chances of restoring exchange rate competitiveness and creating an inflationary environment.
  • Following another strong month for bonds we have reduced gilts as we believe the recent dovish signals from the Bank of England are unwarranted and may, therefore, be short lived.
  • We add to Alternatives; including esoteric assets such as private equity and infrastructure which, in their own ways, stand ready to benefit from the prolonged easy money environment.

Guy Foster
Head of Portfolio Strategy

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