How Pictet Navigates Policy, Market Turbulence

Tom Burroughes

19 June 2025

The head of macroeconomic research at argues that if inflation persists in economies such as the US but doesn’t exceed 3 per cent on a sustained basis, then equities can continue to do well over the longer term.

Still, the Swiss firm has gradually increased its exposure to fixed income markets as interest rates are expected to remain higher for longer.

Pictet’s managers are, like their peers, trying to chart a course through the turbulence following President Donald Trum’s “Liberation Day” tariffs, geopolitical disturbances and the aftermath of the pandemic.

One fact appears clear – whenever there have been crises in the past that encouraged investors to sit on the sidelines and exit markets, they later regretted it, Frederik Ducrozet (pictured), head of macroeconomic research, Pictet Wealth Management, told WealthBriefing in a recent interview at its Geneva HQ.

“Trying to time a market is not worth the effort,” he said. “The case we make is accelerating,” he replied.

Asian assets, including those of Japan, are starting to look more attractive, he said.

“In the last 15 years, the valuation of US dollar-based assets has become extreme, and some change was always going to happen,” Ducrozet continued.

In the short-term, US tariffs have an inflationary impact. Longer term, they are more likely to be deflationary, he added.