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Stock markets around the world finished April in negative teritory. Index MSCI ACWI lost 0.4%, while stocks rose in Europe, where they gained 1,3% on average.

Strong overvaluation is still present in the US market where valuation based on some metrics (P/S ratios) is higher than in the times of the most overvalued market in 2000. Expected long term returns are therefor really low in the US. On the other hand, emerging markets and Europe are still undervalued even though the returns were high in the past year. Expected returns are higher in these undevalued markets.

Macoeconomic data are still relatively good, high growth can be seen especially in EU where leading indicators are in a strong uptrend. There are first signs of a possible slowdown in US economic growth but other indicators must confirm the potential trend reversal to the downside. If the slowdown continues investors should thing more about perserving their wealth rather than chasing returns in risky assets.

The Fund lost 2,25% in April.