Alex Borer

“After a very unstable year for risk assets, major equity and credit markets imply attractive risk premiums or else very low growth assumptions. While the US equity market is in a quite robust trend structure, European equities are trying to build a bottom. A positive while early sign is, that negative news regarding the debt crisis do not necessarily put markets under major pressure anymore. In a step to benefit from attractive valuation and improved sentiment we increase the allocation to European equities and convertible bonds by 2 per cent each and reduce government bonds accordingly.”