Alex Borer

“Risk asset markets sold off dramatically in August based on the downgrading of the rating of sovereign US and the continued debt crisis in Europe. Ironically, US treasuries achieved the best performance. We acknowledge that public deficits and solvency problems on both sides of the Atlantic are not convincingly addressed yet. Markets have been overwhelmed by a wave of sell orders of short-term oriented market participants. We believe fundamentals are better than the perception. But this must first be recognised and damage to the technical picture remains. We reduce equities and increase government bonds and liquidity.”