Swiss & Global Asset Management has revealed its strategies for the third quarter.
The company remains overweight in equities and may take advantage of temporary corrections to make additional purchases.
The temporary slowdown in growth is creating good buying opportunities, as valuations are attractive and monetary policy remains loose worldwide. After renewed analysis of its scenario, valuations and risk potential, Swiss & Global continues to favor equities over government bonds. On the contrary, the company prefers corporate bonds over government paper.
Indeed, enticing buying opportunities are arising, as valuations are attractive and monetary policy remains loose worldwide, Giovanni Leonardo, head of multi-asset class solutions, says. At current valuations, we may add to our overweight in equities. Commodities and high-quality corporate bonds also have potential for investors.
With declining pressure on prices over the next 12 months and relatively attractive valuations, the company is looking to emerging market stocks in terms of equities.
We have favored equities as an asset class since the end of last year, Leonardo says. Despite growth currently easing, we have not altered our assessment.
Swiss & Global favors gold and the energy and agricultural sectors as the fundamentals for cyclical commodities remain negative for the most part.
Swiss & Global has favored the US dollar, Canadian dollar, the Swedish krona and the Norwegian krone as the euro is predicted to remain under pressure during the debt crisis and the Swiss franc is extremely overvalued, especially compared to the US dollar.
(CM)