Frédéric Rollin, investment strategy advisor at Pictet Asset Management. (© DR)
The management company’s investment strategy advisor, Frédéric Rollin, anticipates a still favorable economic climate this year and a decline in inflationary pressures. European and Chinese stock exchanges are preferred.
Frederic Rollin, investment strategy adviser at Pictet Asset Management, thinks the time has come after the drop to buy more shares.
The monetary policy rhetoric of the Fed and the ECB, which has become more restrictive, took the markets on the wrong foot. The rise in interest rates caused a contraction in company valuation multiples.
Geopolitical tensions have pushed energy prices to highs that fuel the risk of a shock to economic growth.
But the Pictet AM expert points out that the cost of an invasion of Ukraine by Russian troops would be a high cost for Russia, subject to significant sanctions from Europe and the United States.
A peak of stress behind us
According to him, the peak of stress linked to central banks is also behind us, after the announcements of an upcoming halt to asset purchases and future key rate hikes. China has even taken the opposite path, by reducing its refinancing rates.
Global economic growth remains solid, consumers are keeping excess savings which should support activity, companies are going to restock and investment is well oriented.
The pace of inflation is expected to slow in the coming months in the United States, as component shortages ease and the price of shipping is