Julius Baer: Rally bordering on euphoric

Global market gains over the last two months are bordering on the euphoric, says Julius Baer's Matthias Ramser, who is maintaining a neutral weighting to equities and commodities across the firm's portfolios.

Remser, the firm's managing director of multi-asset class solutions, says while his weighting risks not participating fully in a continued upswing, the portfolio's cyclical exposure in equities and overweight to corporate bonds will compensate for this. "The second risk would be deflation and a resumption of the bear market. In this scenario, we would have missed the opportunity to realise gains, however, we see little indication of this happening at present," says Remser. "The key question now is how sustained and strong the upswing will be. It is also questionable whether private se...