Alex Borer

“Risk asset markets continue to be highly correlated. Most of the equity markets trade in defined ranges and are basically flat for almost one year. We expect the range trading to continue as long as the camp of the outliers (believers of high inflation and deflation) are balanced. Monetary policy support in case of too little growth provides support to the downside. The long-term bond markets are very much overbought and over little value. We decrease our bond exposure by a further 3 per cent and increase the allocation to Asian equities.”