Alex Borer

“We always judge the quality of a trend by its behavior after corrections. In this respect, the strength of risk asset markets is striking. Headwind from events like the catastrophe in Japan, further tightening in China, renewed stress in European periphery countries and rising bond yields did not prevent the equity market from rebounding quickly and strongly. This leads us to believe the uptrends for equities remain in place. Our macro scenario remains solid real growth coupled with rising inflation. We increase our allocation to inflation-linked securities by 5 per cent at the expense of liquidity.”