"Still equity, but reducing risk." It is with this synthesis that the Edmond de Rothschild group makes known its assessments of asset allocation in the Strategy of the month of September.
The newsletter signed by Benjamin Melman, head of Asset allocation and sovereign debt, essentially confirms the choices of the past months with some extra caution compared to the Group's positions on US and high yield bonds. On the other hand, a certain optimism is confirmed with regard to equity in Europe and Japan.
Relatively to the United States this decision to reduce risk is based, explains Melman, in the policy of the Fed which is preparing to operate in more restrictive monetary regimes.
For Europe – he adds – the markets are instead proving to be excessively pessimistic. In fact, the Old Continent will benefit not only from the US context, but also from the fall in interest rates and from a stronger single currency in the face of the recent choices announced by the ECB. Furthermore, it should not be overlooked that Europe has now fully assumed the risk deriving from the tensions in Ukraine.
Finally, Japan: here the recovery now seems certain to everyone, concludes the September Strategy, even if the higher VAT is clearly having a more negative effect on the economy than expected.
