Pierre Bonart

“We see low equity volatility and reasonable equity valuations, with industry PE sticking within a narrow range. Government bond yields in Europe and the US are low, commodity prices are rising, credit spreads are tight and real estate prices are high. Yields may go even lower. Risk-reward is quite poor and calls for an alternative, which is why we are maintaining a relatively low fixed income exposure. We are ready to accept an opportunity cost in the short run, while chasing long-term higher returns.”