Strategic readjustment: monthly asset allocation and the return of Japanese equities

The updated monthly asset allocation table is now available here.

There is a notable change compared to the previous month, that of the return to grace of Japanese stocks. Indeed, despite their extremely attractive valuation, they had been following a negative trend since the beginning of the year. Since September 12, they have recovered 5%, which allows them to break out of this downward spiral and become an interesting investment again, both from a price and trend point of view.

Regarding stocks in other countries, we remain more or less with the same parameters as last month. Swiss stocks are still following a positive trend, which is even accelerating, but still at prohibitive price levels. In Europe, it is just the opposite, prices are quite interesting, but in full collapse. To be avoided for the moment. In the USA, we are still following an extremely strong positive trend, with prices totally disconnected from reality. Interesting for those who want to trade in the short term, but very dangerous if you bet on the long term. Canada, on the other hand, remains a fairly interesting alternative, with a slightly positive trend and prices that are certainly a little high, but still very affordable compared to its southern neighbor. Finally, emerging countries, despite particularly attractive valuations, continue to sink further and further. As the saying goes, you can't catch a falling knife. It is certain, however, that this will offer very nice opportunities when prices have stabilized.

As for Swiss long-term bonds, they also remain overpriced, with a yield close to zero. They are also following a slightly negative trend. This asset class should therefore be avoided, just like gold, which has clearly been struggling for several months, despite a very attractive valuation compared to stocks. The yellow metal will also offer us some nice opportunities when prices stop falling.

Finally, regarding the other investment categories, no changes, still invested in real estate and no "Leverage" position. We should also note that the proportion of cash targeted is down a little compared to the previous month, thanks to the return to the odor of sanctity of Japanese stocks.