Barometer: Stocks to power on despite lofty valuations

Pictet Asset Management’s Strategy Unit argues that resilient earnings growth still outweighs valuation concerns as bond yields rise.

• Pictet remains overweight equities, with emerging markets and IT offering the strongest earnings prospects.
• Government bonds look more attractive on yield, but high public debt, resilient growth and policy uncertainty keep Pictet neutral on developed-market sovereign debt.
• Emerging-market local-currency bonds remain favoured for income, while gold stays overweight as a hedge against policy and geopolitical risks.

Explore the full report for Pictet’s latest views across equities, bonds and currencies.