Financial markets and the economy are intimately linked. The price of financial assets includes information on the business cycle, the relative value of financial assets, and investors’ perception of economic indicators. Conversely, economic policy has an impact on growth, inflation, exchange rates… all key variables affecting the financial markets. The private bank’s research and strategy team defines the economic scenario, analyses change in the financial markets and identifies investment opportunities.
Societe Generale Private Banking’s research and strategy teams analyse macro-economic trends to define the global economic scenario, in coordination with the investment teams.
The research and strategy teams release a global macroeconomic and financial markets scenario with a six-month to 1 year horizon (6 times per year). This scenario covers all asset classes (equities, bonds, emerging markets commodities and currencies). Once an investment outlook and strategy is defined, the investment teams implement these decisions within the investor’s asset allocation and client portfolios.
The teams also identify relevant investment themes for investors. In the case of unexpected market events (for instance the Fukushima catastrophe in 2011 and the debt crisis), which can also have significant impact on the economy, the team will define the group’s view, enabling our investment teams to respond quickly to market fluctuation.