In the Strategy Unit’s commentary on Asset allocation, the house raises its macro assessment of the USA to neutral thanks to consumer confidence and revises its growth forecasts upwards for the Eurozone
Actions Always underweight, obligations Instead overweight and neutral view on liquidity, while acknowledging the attractiveness of its unusually high yields, as it is still attractive to take a risk Of duration. The macroeconomic assessment on USA is raised to neutral on the back of the strong recovery in consumer confidence, as they are reviewed upwards growth forecasts forEurozone. These are the latest indications of asset allocation from Strategy Unit Of Pictet Asset Managementwhich points out that bond yields are back to cycle highs, making fixed income attractive again, while US equities are once again somewhat expensive
PERSISTENT INFLATION HAS RETURNED RATES FEARS
The earlier year rally suddenly ran out of steam in February. Investors were convinced that the big monetary tightening of 2022 would lead to a new easing phase, that theinflation would have fallen rapidly, and the economy remained resilient. But persistent inflation has revived fears about how high i will go rates and how long they will stay there. Pictet AM monitors developments cautiously, having long believed that rates would remain high for a long time and although the economy is more resilient than expected, believes that the robustness of the data is linked to seasonal factors and a more temperate climate than expected…
** This article was written by FinanciaLounge