Alex Borer

“Sell in May and go away? Is one of the most popular stock market adages becoming true again? We don’t think so. Risk assets – most prominently equities and commodities – corrected at the start of May. We believe this to be a reflection of the continues struggle between deflationary forces in developed markets and more dynamics in emerging markets. Expansive monetary policy in most countries will prevent a fallback into crisis mode. Macro economic surprise indicators are deeply oversold, which calls for counter-cyclical investment behavior. We increase the allocation to CTA/managed Futures by 2 per cent.”