Investment strategy – Private banking, 1st quarter 2014
- A slow and progressive healing process is gaining traction. World growth looks set to be slightly stronger in 2014, driven by developed economies.
- While global inflationary pressures should remain subdued, some emerging economies may face a deteriorating trade-off between growth and inflation.
- The transition in the growth model of emerging markets, particularly China, should put a definite end to the commodity supercycle.
- Despite Fed tapering, liquidity should remain abundant and continue to shape the global investment environment in 2014.
- As economic fundamentals take precedence over systemic worries, risky (yielding) assets are to be favored over cash.