Playing Economic Acceleration
February 24, 2017
Global growth and inflation acceleration is positive for risk assets and equities, in particular, are expected to outperform bonds in the next few months. In equities, we keep a selective approach favouring markets where we see stronger earnings growth. Selection is paramount also in fixed income, where we prefer short duration bonds and inflation linkers.With higher expectations, there is more room for disappointment. Trump’s fiscal reforms could be delayed, his protectionist policies could damage the global economy. We therefore like riding the reflationary wave with a strong focus on hedging (gold and US dollar).