Compared to bonds, U.S. equities are as overvalued as they were in 2003 and 2009. Back then, both asset classes were cheap. Hard to argue that this is the case again today.
By: Björn Jesch
Lessons from past episodes
From both a market and a political perspective, the “news” that Fitch now rates United States' long-term ratings as 'AA+' contained no new information and is likely to have very little direct market impact.
Next week the ECB's balance sheet will shrink by over 6%. Further reduction will take place much more slowly – with uncertain consequences for the markets.
Europe’s bank sector has proven resilient since the Credit Suisse rescue but AT1 bonds have still not fully recovered – making them all the more attractive, in our view.
Emerged as relative winners in the fixed-income segment – and we believe they can still deliver