Beverly Chandler, Opalesque London: Lyxor Asset Management’s latest research reveals that they have two key calls for 2013:
The roots of their optimism can be traced to the realization
of three scenarios, they write. "First, we expect a pickup of world activity,
starting 1Q13, led by US and Asia. Second, we anticipate
calming of political risks, following the recent non - US fiscal cliff
- event, and the ongoing success of OMT measures in the
euro-zone. Lastly, we believe that Central Banks should
maintain ultra-loose monetary policies, as employment troubles
take time to heal.
- Risky assets outperform safe heavens
- Hedge funds offer inviting risk-return profiles
The firm argues that it’s time to prefer equities. "Equities remain
historically cheap relative to safe haven bonds. Last year
already saw the onset of normalization in equity risk premiums.
We believe that risk premiums will ease again in 2013, as
improving economic conditions prompt investors to become
less and less reluctant to buy "risky" equities rather than "safe"
In particular, Lyxor believes that European equities are well positioned. "Indeed, debt fears in
peripheral countries sent domestic valuation metrics on ugly
levels compared to their counterparts. European equities have
room to significantly outperform U.S. equities in 2013.
Moreover, the recent relaxation of Basel III rules should be a
positive trigger for Eu......................
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