22 September 2016: Taking away the punchbowl?
– Bonds and stocks have become more positively correlated, which complicates asset allocation.
– The monetary policy debate has grown, with support for negative rates appearing to wane. We expect stimulus to continue. But central banks may use different tools.
– Investors can use alternative asset classes and new strategies to limit volatility and generate returns that should beat cash and high grade bonds.
– We are introducing an overweight position on a basket of emerging market currencies versus a selection of G10 currencies. We remain overweight US equities versus high grade bonds, and prefer EM stocks over Swiss shares.