Investment Strategy, July - August 2012 - Wealth management
July 2012 - #50
The European summit at the end of June did not turn out to be the tipping point that investors had hoped for. After posting an initial steep drop, risk premiums on peripheral debt once again rose rapidly. Unexpectedly, however, equity markets held up well. We are again sending a message of prudence when it comes to this asset class, given the slowdown in global growth and the risk of disappointing company results. We still prefer to invest in private sector bond issues, although we are focusing on investment grade issuers at the expense of more speculative issuers, which are more sensitive to economic fluctuations.