Pictet Wealth Management

How can innovative technology support advanced cancer diagnosis? A pioneering new technology – liquid biopsies – may significantly increase cancer survival rates by enabling early disease detection. Chiara Brambillasca, PhD, from Pictet’s Thematic Private Equity team, explains the science behind this new technology as well as its numerous benefits. At Pictet Wealth Management, we are excited to be investing in the private companies driving this and many other transformative healthcare innovations. #PictetInsights #HealthCareInnovation #LiquidBiopsies

CIO Weekly View - The dramatic exit of Joe Biden from the US presidential race and his probable replacement by Kamala Harris as the Democrats’ candidate places a question mark over the so-called ‘Trump trade’, which is posited on the idea that a big victory by Trump and the Republicans in November will lead to higher long-term rates and a steepening of the yield curve. We still believe a Republican sweep of the presential and congressional elections is the most likely outcome, although Harris’s emergence could re-set the odds. Read our full review here: https://lnkd.in/exFqcR64 #PictetInsights #MacroResearch #MarketsView

Upon realising the true human cost of cheap labour in the fashion industry, Marianne Hughes launched her startup, Kno Global – focusing on the wellbeing of garment factory workers while also providing real-time supply chain data to brands and businesses globally. Kno Global approach provides detailed insights into worker experiences, covering productivity, pay, wellbeing, and more. By identifying factors contributing to worker turnover, such as loneliness or harassment, the platform helps companies reduce turnover rates, saving significant costs. Read more: https://lnkd.in/e_Vpfh4h #PictetInsights #Entrepreneurship #SocialImpact

In a wide-ranging interview with the news site WealthBriefing, Pictet Wealth Management’s CIO, CESAR PEREZ RUIZ, urged investors to use low equity volatility to build up protection against a dangerous levels of of political and geopolitical risk. Pérez Ruiz pointed to the rise of populist parties in the recent French and European Parliament elections, as well as highly fraught elections in the US in November and the situation in the Middle East, as reasons to build up portfolio protection and play volatility through options strategies. The good news for now, he said, was that low market volatility means “it’s very cheap to hedge”. Pérez Ruiz also said current circumstances meant he remained positive on gold. In the same interview, chief Asia strategist Dong Chen reiterated PWM’s continued neutral stance on China and said he takes seriously the risk that the Americans impose more tariffs on Chinese imports after the November election. Chinese equities were already discounting this risk, he said, although “Chinese business will still find ways to live and get around it.” 

CIO Weekly View - The June consumer price index (CPI) report bolsters our case for a first Fed rate cut in September, followed by another in December. The report also curtailed market concentration, with small caps performing much stronger than the big tech-related stocks last week. The Q2 earnings season should show a decline in the Magnificent Sevens’ share of earnings growth on the S&P500. This week, we will be looking closely at US retail sales figures to see if they signal a slowdown in consumer spending, and at the Chinese Communist Party’s Third Plenum. Read our full review here: https://lnkd.in/evx28QPn #PictetInsights #MacroResearch #MarketsView

The average person in the developed world uses three times more water than is sustainable, but industrial designer Mehrdad Mahdjoubi believes that innovative design, not behaviour change, is the key to curbing consumption. Inspired by his work at NASA and driven by a passion for efficient water usage, Mahdjoubi founded Orbital Systems in 2012, a circular shower system that recirculates and purifies water, avoiding excessive wastage. Read the full article to discover how Orbital Systems is making sustainability a mainstream choice: https://lnkd.in/d_kFUSY8 #PictetInsights #Entrepreneurship #Innovation #EnvironmentalImpact #WaterConservation

CESAR PEREZ RUIZ, Chief Investment Officer of PWM, shares his 3 key themes: 1️⃣ Question marks over government bonds Elections in the UK, France and the US are pushing fiscal issues to the top of the agenda and will influence the direction of rates. While the election result in France seems to have reduced the chance of large, unfunded tax cuts, there is still a risk to France’s fiscal position. We expect the French state to continue to pay a higher risk premium to issue debt than before the calling of elections and we have raised our year-end forecast for the spread between Bunds and French government bonds. French and other European issuers could also face higher risk premia. 2️⃣ US market gains need to broaden The narrowness of recent market returns, dominated by a handful of large-cap tech names, continues to be a source of concern in US equities. However, earnings growth in the US should broaden out in H2. Earnings projections for later this year remain relatively robust in Europe and Japan, but we need to watch the impact on investor sentiment of the French political morass and the fast developments in the presidential election campaign in the US. 3️⃣ Still waiting for China to regain stride Investors in Chinese equities have turned more cautious again of late, judging as inadequate recent measures to stabilise the property sector. A near-term catalyst could be the Communist Party’s ‘Third Plenum’ this month and the beefing up of efforts to restore confidence in the property sector. Tech companies in Taiwan and Korea continue to do well, and the outlook for Indian equities looks structurally positive. A strong USD continues to hang over the renminbi. Persistent trade tensions could also persuade the Chinese authorities to let the currency weaken. Read our full review here: https://lnkd.in/eVkjXAW6

Witnessing the loss of a coral reef due to rising sea temperatures, marine biologist Vriko Yu founded Archireef, a startup committed to restoring degraded marine environments using cutting-edge 3D printing technology. Archireef's commitment to sustainability extends beyond their technology. Unlike plastic or metal, their clay tiles are made from natural materials and are pH neutral, minimizing harm to the marine ecosystem. With a remarkable 95% coral survival rate, Archireef's approach outperforms traditional reef restoration methods by at least four times. Learn more about their mission to combat climate change and secure the future of our oceans: https://lnkd.in/emuVi4VP #PictetInsights #Sustainability #ClimateAction #CoralRestoration

CIO Weekly View - As the second quarter earnings season approaches, consensus expectations are for earnings to be less narrowly based than in the first quarter, when ‘Magnificent seven’ stocks generated most earnings growth. While we may see a broadening of S&P 500 earnings, it will be critical to monitor the forward guidance companies give to see whether index constituents are confident about generating profit growth in the quarters ahead. Read our full review here: https://lnkd.in/eTJhHAVB #PictetInsights #MacroResearch #MarketsView

Hedge funds are a diverse asset class, encompassing complex strategies that take advantage of investment opportunities across asset classes. They have proved their worth over the past 30 years, offering diversified returns to investors, often thanks to their focus on volatility, dislocation and changes in the market paradigm. By positioning ahead of market shifts, hedge funds can play an important role both in enhancing returns and defending portfolios against market downturns. Their inclusion in portfolios has significantly mitigated the impact of stock market sell-offs at various stages over the past three decades, most notably during the ‘dot com’ bust of 2000-2002 and the global financial crisis of 2008-2009. Their active approach to investing combined with a rigorous approach to risk management mean that hedge funds can exploit volatility, as well as divergences in economic developments across the world or between asset assets. They often come into their own during periods characterised by worries about political and geopolitical developments, or uncertainties about fiscal deficits and interest rates. #PictetInsights #HedgeFunds #DiversifiedReturns #AlternativeAssets