IDEA of the month: Buying Private Equity
This month we buy the Private equity LPX Major market total return index with 5% weight and sell 5% of the EONIA stake. Main reason is that we expect the private equity sector to …….
We keep the portfolio share of equities stable at 30% which reflects a moderately positive stance. Our regional equity strategists have published strong positive equity outlooks 2011 for all major regions USA, Europe, Asia and Japan and
equities remains the strongest asset class on our scorecard. We keep our 10% weight of the Dax supported by an ongoing strong momentum for the German economy. We also keep the Banks and Utilities sectors in our portfolio, which are the only 2 sectors with a negative performance in 2010 and have catch up potential for 2011, in our view. We also keep the Short Iboxx Euro Sovereign Eurozone Index with a high weight of 20%. Our economists expect interest rate levels to gradually normalize from the record lows seen in mid 2010 supported by the trend out of nominal asset into real assets.
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Source: Trading Ideas ETF: Ideas and Flows – Deutsche Bank AG