G E ORG E V A S S E T M A N A G E M EN T 2011 April 30th
MANAGEMENT VIEW
The geopolitical environment in the Arab world is still deteriorating. It should remain extremely vigilant about the situation in Saudi Arabia. We have taken conservative measures early. The situation is worsening, the US budget deficit exceeded 10% of GDP (1500 billion $). Inflation grows in China and India. The prices of agricultural products push up wages demand. Only companies still benefit from the situation which explains the performance of financial markets. Oil price have began to weight on US consumption. The US became the first time in 20 years a net exporter of refined products. From our point of view the downside risks are very important. In this environment, Gold remains an opportunity over the geopolitical situation and growing inflation in the BRIC. We remain underexposed to equity market.
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