Alex Borer

“Financial markets continue to operate in a either risk on or risk off mode. Once able to forecast the performance of the long-term German government bond, you can derive an accurate forecast for almost any asset class. The global economy remains in a low growth, low inflation deleveraging phase. This is not necessarily a negative environment for risk assets: the offer decent risk premiums and once macro-economic indicators get too negative, investors are beginning to anticipate a policy response from the central banks or fiscal support. We increase our exposure to the S&P 500 fund, that buys the index and sells call options.”