LONDON : Heavyweight European asset manager Pictet said on Thursday it was going 'overweight' on world stocks after their difficult start to the year and was positive on Chinese equities again after their beating last year.
"Taking advantage of attractive valuations, we have chosen to upgrade equities to overweight on a tactical basis," the firm's chief strategist Luca Paolini said, stressing it was conditional on no overly-rapid rise in U.S. interest rates and no Russian invasion of Ukraine.On China, Paolini said the firm had upgraded Chinese stocks from 'neutral' to 'positive' on the basis that authorities were now providing more support for the economy.
"Chinese equities could recoup last year’s declines and narrow the valuation gap with their counterparts in the coming months," Paolini said.