Pictet Sees Equity Weakness Ahead, Demand For Safe Haven Assets To Continue

Tom Burroughes

27 June 2016

Swiss private bank bond market to steepen in the short run; expectations that the Bank of England will move to "normalise" monetary policy from its current highly accomodative position are likely to be put on hold for the time being. US Treasury yields will decline, and German bund yields will decline also.

Depending on whether the UK leaves the EU in a "hard exit" (no preferential access by the country to the Single Market) or a "soft access" (continued access with some concessions), loss to the UK's gross domestic product over the next five years could range from 4 to 8 per cent, Donay said.

Earlier this year, Donay said the bank was looking for a trigger event to justify an increased allocation of gold as a way to insure against some downside risks in global markets.