Alex Borer

“Risky assets rose again last month, as marginally improved economic news, oversold conditions, attractive valuations and some positive trends in corporate earnings fuelled an impressive rally. We are not convinced that we are at the beginning of a new secular bull market, as there are still a number of downside risks – but the increasing risk appetite leaves some room for further gains. Our recommended allocation, which strongly built on credit and reasonable equity exposure was able to post strong absolute returns. We increase the allocation to high yield bonds further – from 4 per cent to 6 per cent and reduce liquidity accordingly.”