Alex Borer

“It does not take a lot of analysis to realise that there are still major fundamental problems affecting financial markets – the sovereign debt crisis, lack of growth in Western economies and geopolitical tensions to name a few. But the brave are well compensated for taking on risk. Yield curves are steep and make bond investments look appealing, given the prolonged zero money market rate policy. Credit spreads contracted to average – since corporate balanced sheets are robust these assets remain attractive. Equity risk premium is at an elevated level and therefore interesting. Bottom line: diversify and collect the fruits.”