Alex Borer

“Equity markets staged a strong rally based on a more credible support plan for the US banks which coincided with extremely negative sentiment among consumers, corporates and investors. We believe it to be a bear market rally. Neither economic fundamentals nor market technical indicators lead us to believe in a sustainable uptrend in equities. Our allocation is strongly focused on credit markets, where high yield, emerging market and convertible bonds offer appealing credit risk premiums. We recommend to sell the iShares Listed Private Equity Fund after a strong run in March and keep the proceeds (2 per cent) in cash.”