The four pillars supporting risky assets

1. As long as the world under-invests, real long-term interest rates are likely to remain low.
2. The problem of an ‘asset shortage’ is not going to go away soon
3. The global economic backdrop, with recent confirmations that the US may have established a trough in 1Q, is so positive that that there can be no better time to be positive on risky assets
4. The activation of SWFs should be positive for risky assets (in particular for equities) and negative for risk-free assets. Sovereign Wealth Funds