Pictet boosts European exposure but cuts Pacific position

Pictet Asset Management has upgraded its European exposure to a full overweight, following the resolution of a Greek bailout deal and positive expectations for future earnings.

The company believes economic growth is resilient, helped by a recovery in countries such as Spain and Italy at the expense of a weaker Germany. It forecasts earnings, which are expected to grow by 7.7% this year, could potentially exceed this level. Europe's recovery has been attributed to strong household spending and improved consumer confidence, although business spending growth remains muted. The firm has also upgraded European high-yield bonds from underweight to neutral and cut exposure to European sovereign debt from overweight to neutral. Three very different ways to gai...