Equities Should Do Better Than Bonds in 2Q, Says Pictet Wealth’s Donay

The video discusses the market strategy for Q1, highlighting a reduction in risky assets due to deteriorating fundamentals and negative earnings momentum. For Q2, a rebound in economic growth is expected, driven by central banks' actions. Despite a cautious outlook, equities are anticipated to outperform bonds in relative terms, although no strong bull market is foreseen.

What was the primary reason for reducing exposure to risky assets in Q1?

• Deteriorating growth fundamentals and negative earnings momentum

• Improved economic fundamentals

• Higher interest rates

• Increased market volatility

What is expected to drive economic growth in Q2?

• A rebound in the housing market

• A decrease in consumer spending

• A rise in commodity prices

• Central banks' actions and an extended credit cycle

How does the speaker view the potential for a recession in the near term?

• A recession is already occurring

• A recession is not expected

• A recession is expected in the next quarter

• A recession is highly likely

In relative terms, which asset class is expected to perform better in the next quarter?

• Bonds

• Commodities

• Equities

• Real estate

What is the speaker's outlook on the absolute performance of equity markets?

• Expecting a strong bull market

• Expecting a moderate bear market

• Not expecting fantastic absolute performance

• Expecting a market crash