Pierre Bonart

“In our opinion, current market uncertainties are more driven by fears on credit than by the growth slowdown, which explains why markets reacted less to the Fed rate cuts than they did to Warren Buffett’s announcement on credit insurers. We maintain our slightly cautious bias, keeping a 40 per cent exposure to alternative investments, through multi-strategy funds of hedge funds. We continue to favour large-cap equities and believe strong sectorial bets should be avoided because of the high volatility across sectors. Investor pessimism is high and could trigger a short-term rally but care should be taken before turning bullish again.”