Pictet Asset Management
The latest research and outlooks in the ProAllocate library
- Portfolio Construction
Barometer: Cutting back on equities as financial conditions offer less support
Pictet Asset Management downgrades global equities to neutral as tightening liquidity, rising bond yields and geopolitical risks offset resilient growth and earnings. It stays neutral on bonds, favours the Swiss franc and gold, and trims emerging market local debt.
- Equities
Investing in the real assets powering the global economy
Pictet's Duncan Downes argues listed real-asset companies—utilities, infrastructure operators, quarries and gold miners—offer inflation-linked dividends and resilient earnings amid surging AI-driven electricity demand and reindustrialisation.
- Macro
The US mid-terms: two extreme outcomes investors should hedge against
Pictet's Luca Paolini argues US mid-term elections rarely move markets, but a progressive Democratic sweep or a Republican retention of Congress could reshape 2028 expectations and trigger sharp equity swings. He recommends hedging via cheap short-term S&P 500 put options rather than gold or bonds.
- Fixed Income
Emerging market local currency bonds come of age
Pictet's Adriana Cristea argues that two decades of improving policy credibility have transformed EM local currency bonds from a niche, opportunistic trade into a mainstream asset class warranting active, benchmark-agnostic allocation. She highlights South Africa, Turkey and dollar valuation as examples where active positioning beyond benchmark weights captured policy-driven re-ratings.
- Sustainability
Nature's Echo: harnessing feedback loops towards regeneration
Ecologist Tom Crowther's book Nature's Echo argues ecosystem collapse can be reversed by breaking negative feedback loops through finance mechanisms like payments for ecosystem services and debt-for-nature swaps. Pictet's Gabriel Micheli adds that positive tipping points, as seen in renewables, are now emerging in regenerative agriculture, creating investment opportunities.
- Portfolio Construction
Barometer: Stocks to power on despite lofty valuations
Pictet Asset Management maintains an overweight equity stance, arguing strong earnings growth outweighs stretched valuations relative to rising bond yields. The firm favours emerging-market and technology stocks while staying neutral on developed-market government bonds despite yields breaching 4%.
- Private Markets
Investing for a healthy society
Pictet Alternative Advisors' Yann Mauron argues private capital is essential to healthcare innovation, citing biotech funding gaps, women's health inequities and GLP-1 drug breakthroughs as evidence of unmet investment opportunity. He contends targeting therapeutics and healthcare providers can align societal impact with investment returns.
- Currencies
Currency hedging: When one size doesn’t fit all
Pictet's Maria Vassalou argues currency hedging should not be an all-or-nothing decision but integrated into portfolio construction via risk-adjusted analysis. Optimal hedge ratios vary by currency pair, asset class and time, favouring flexible dynamic strategies over static ones.
- Thematics
Keeping cool in a warmer world
Mega's Jennifer Boscardin-Ching argues that rising global temperatures and AI-driven datacentre growth are turning heating, ventilation and air conditioning into a structural, multi-year investment theme rather than a cyclical one. She contends that closing the wide gap between cooling need and capacity, via efficient thermal management and liquid cooling, creates lasting opportunities for companies building climate resilience infrastructure.