Alex Borer

“Major equity markets exceeded their April 2010 high and credit spreads contracted further. This development seems to be in contrast to the anemic growth of Western economies, but strong growth is not a prerequisite for performing equity markets. More important is that risk premiums are still high, meaning the valuation is attractive and that investors are not strongly invested in risky assets. The record low level of short-term rates and long-term bond yields will drive investors further into the market. We stay firmly invested with the exception of a 2 per cent reduction of gold mines after stellar performance.”