Equities Should Continue To Outperform: Pictet
Luca Paolini, chief strategist at Pictet Asset Management, explains why equities should continue to outperformSee also:
“An improvement in global economic conditions should eclipse concerns over the looming withdrawal of US monetary stimulus, and lend support to equity markets heading into year-end, traditionally a favourable period for stocks. We therefore maintain our overweight stance on stocks and stick to our underweight position on bonds. “The outlook for bonds is less encouraging. With the US Federal Reserve about to shift to a less expansionary monetary policy and with inflationary pressures unlikely to ease any further, the scope for gains in government bonds is limited. In our regional portfolio, we continue to prefer emerging market equities and Japanese stocks. In emerging markets, valuations are especially compelling as stocks are trading at a 24% discount to their developed counterparts on a price-earnings basis.
“Our preferred markets are China and Russia, where valuations are especially attractive....MORE
Pictet December 2013: More Than You Ever Wanted To Know About Swiss Competitiveness
Geneva in the early 19th century Jean Dubois, 1830, Pictet Art Collection
From True Economics:
Reading Pictet's latest monthly, covering the topic of Swiss competitiveness... it is awesome - with interviews from academics, watchmakers, artists, museums directors, company that makes engines for Mars rovers, biotech giant, and so on....True E. didn't have a link so here's perspectives.pictet (64 page PDF)
