Investment recommendations from Societe Generale. Go ahead jump in, the water is fine. Nothing to worry about.
#1: Global equity sectors: prefer banks and consumer cyclicals over consumer staples such as food, beverage and tobacco. Country exposure: prefer eurozone peripheral equities to US stocks. Valuations are clearly supportive.
#2: Rates: prefer exposure to Spanish government bonds over German paper. Bund
yields should rise as economic activity in the euro area bottoms out.
#3: Forex: prefer the [British pound] GBPUSD -0.27% over the Swiss franc EURCHF +0.50% . We do not expect [incoming Bank of England Gov.] Mark Carney to announce additional QE when he joins the BoE; we know the [Swiss National Bank] is seeking to weaken the [franc].
#4: Commodities: prefer base metals over precious metals. The tapering of QE in the US and resulting dollar appreciation should continue to drive headwinds against gold.
#1: Global equity sectors: prefer banks and consumer cyclicals over consumer staples such as food, beverage and tobacco. Country exposure: prefer eurozone peripheral equities to US stocks. Valuations are clearly supportive.
#2: Rates: prefer exposure to Spanish government bonds over German paper. Bund
yields should rise as economic activity in the euro area bottoms out.
#3: Forex: prefer the [British pound] GBPUSD -0.27% over the Swiss franc EURCHF +0.50% . We do not expect [incoming Bank of England Gov.] Mark Carney to announce additional QE when he joins the BoE; we know the [Swiss National Bank] is seeking to weaken the [franc].
#4: Commodities: prefer base metals over precious metals. The tapering of QE in the US and resulting dollar appreciation should continue to drive headwinds against gold.