Société Générale has increased its recommended allocations to equities and commodities while cutting bonds and cash, arguing that government spending and corporate investment will keep the global growth cycle resilient despite tighter monetary policy. Chief U.S. equity strategist Manish Kabra said in a June 18 note that the bank raised equities to 55% from 50% and commodities to 20% from 15%, with corresponding reductions in fixed income and cash. Within equities, SocGen added exposure to the United States, Japan, and the United Kingdom, and boosted its China allocation while trimming broader emerging-market weightings. The bank also highlighted catch-up opportunities in U.S. banks and gold, and recommended short euro positions against commodity-linked currencies including the Norwegian krone, Canadian dollar, Australian dollar, New Zealand dollar, and Brazilian real, as well as a short EUR/INR trade.
Societe Generale S.A.SocGen's own strategist upgrades equities and commodities, signaling positive outlook for the bank's trading and investment banking revenue.