LONDON, Nov 9 (Reuters) - Pictet Asset Management said on Friday it had raised its allocation to equities to overweight from neutral and cut bonds to underweight following October's global market shake-out.
"Whilst it is true that the equity bull market of much of the last decade had gone too far, so too did October’s sharp correction," Pictet Asset Management's chief strategist, Luca Paolini, said in a new report.
"We have raised our allocation to equities to overweight from neutral, and downgraded bonds to underweight."
Asian markets represent particularly good value, having been battered by concerns about trade wars and a slowdown in China, he added. "Any signs of a rapprochement between the United States and China on tariffs - which may emerge in November – could spark a revival in emerging market stocks," Paolini said. (Reporting by Marc Jones; editing by Helen Reid)