Alex Borer

“All major US equity indices reached new cycle highs at the end of April, a very strong technical signal that the bull run in equities that started two years ago is still in place and unlikely to reverse. Some headwind in Asia and emerging markets stemming from potential overheating and less expansive monetary conditions caused a consolidation in prices. We believe this to be a temporary situation. After the strong run in government bond markets, we reduce this asset class by 2 per cent and increase our allocation to inflation linked bonds. We increase commodities following the sharp correction.”