Monthly Investment Strategy Highlights, April 2017
Pictet Wealth Management’s latest positioning in fast-evolving markets.
- The first quarter was exceptionally strong for risk assets, and the outlook remains good for developed market (DM) equities.
- We remain comfortable with our overweight in developed market equities, but it would be wise not to take too much risk in the coming quarter.
- EM assets may offer attractive opportunities on a tactical basis.
- The US dollar probably has only limited further upside, absent a major boost to economic growth.
- The Swiss franc looks set to retain its safe-haven role.
- The reflation trade is proving resilient, supported by a good earnings growth outlook.
- Valuations for DM equities are well above long-run averages and leave little room for disappointment.
- We continue to favour high yield within fixed income.
- US Treasuries remain important as a protection asset.