Julius Baer: Quality Focus
In an 8-point investor survival guide, Julius Baer’s group CIO Yves Bonzon broadly told clients to avoid valuation-based theories and focus on quality assets.
On valuations, Bonzon advised against relying on absolute metrics in the current scenario – a matter highly dependent on economic contraction and global policy response – especially in light of «modest and vague» fiscal measures. Relative valuations were highlighted as much more reliable with intra-sector spreads already priced in.
While gold and crypto have failed to demonstrate their safe haven features – the latter shed double of the S&P 500 index – Bonzon still favors quality investing, especially in regions that are able to print money in which they borrow such as the U.S. Switzerland, Singapore and China. And he underlines the benefits of staying invested due to the «extreme» possibility of market shutdowns for several weeks which could lead to a sizeable missed rebound.
