Multi Asset Boutique

Vescore Global Market Outlook August 2019

  • Economic woes weigh on risk appetite

  • Rise in risk indicator slows

  • Equity overweighting declines

  • Reduction in bond allocation

  • Commodities: Price correction on grain

  • Swiss equities: Appeal of value factor continues to rise

Economic woes weigh on risk appetite

There are signs of a shift in the relationship between the economy and monetary policy at the start of August: While sentiment had been dominated by hopes of monetary easing in the first half of the year, investors are now focusing on the US trade conflict and the more downbeat global growth forecasts.

Our models show a slight decrease in equity overweighting, while bond allocation also declined again. On the commodities market there was a price correction on grain, and on the Swiss equities market our models indicate that value stocks are becoming increasingly attractive.