PAM Institutional Investment Focus - July 2010

14 July 2010

Equity markets impasse – seeing the wood for the trees

"…most other periods of severe unemployment, (are) produced by government mismanagement rather than by any inherent instability of the private economy."

Milton Friedman

Despite lower bond yields, equities struggle

The second year of an economic recovery often proves to be a testing time for equity investors. Typically, once the upturn is established, rising bond yields cause equities to struggle for a time, despite the improved outlook for corporate earnings. In the current cycle, bond yields in countries such as the US and Japan are making new multiyear lows however, and despite strong earnings reports, equities are indeed struggling.

(...) - continue in PDF download Full document

U.S. Nationals and Residents, please click here for Investment Advisory Services only, as local legal restrictions apply for the US.

Worldwide visitors: Please consult the Legal notice for (1) detailed local legal restrictions applicable to your country and (2) weblinks to specific entities of the Pictet Group designed in function of those restrictions.

You have reached a webpage of the pictet.com domain for the Pictet Group entities located worldwide. Country or regulatory requirements may prevent certain visitors from (1) being solicited, (2) being offered certain services or financial products and (3) engaging in business with certain entities of the Pictet Group. For this reason, you may be redirected in certain cases to specific websites of certain entities of the Pictet Group. Furthermore, you are strongly recommended to consult the Legal notice prepared for www.pictet.com.

©2010 Pictet & Cie, Private Bankers
Private Banking, Private Wealth Management, Institutional Asset Management, Independent Asset Managers, Geneva, Switzerland.