Benedicte Gravrand, Opalesque Geneva:
Some fund managers prefer European equities over their U.S. counterparts in 2014, as well as opportunistic emerging market bond investments.
This is the case for Christina Boeck and Chris Iggo, both CIOs at AXA Investment Managers, who share with Sona Blessing on Opalesque Radio their global market outlook for 2014 and some of their asset allocation picks.
AXA’s base case for 2014 is positive although no boom is expected. According to Christina Boeck, the global economic healing that started around 18 months ago, with a little governmental help, will continue throughout the year. Although, there are still some very strong structural imbalances in the financial world, she adds. To come out this, "we must struggle through for some time and give governments debts a chance to come down through growth, which still must be helped by monetary authorities."
AXA’ asset allocation forecast is based on that view, she says, and favors risky assets. "Equities should have a good performance but it is absolutely impossible to forecast when exactly we will get the corrections. Because there will be corrections on the way," she points out.
Allocations will be overweight global equities, although the managers will be more prudent with U.S. equities, as they believe their valuation is much higher than the......................
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