Michael Strobaek: "Equity Rally Is Growth Driven"
Following an upgrade of equities to "overweight" at Credit Suisse, Global Chief Investment Officer Michael Strobaek explains why the rally is set to continue.
The year 2017 still has a number of weeks to go, but already now it is evident that it has been a year of increasingly strong and synchronized growth. Indeed, macroeconomic data in the USA and Eurozone have continued to surprise positively, prompting us to revise up our growth forecasts.
Powerful Driver of Equity Markets
This positive backdrop has been a powerful driver of equity markets. The latest earnings season has yielded strong revenue and profit growth, as well as an increase in companies' earnings guidance for 2018. We believe that these strong corporate and macro fundamentals will help carry the positive market momentum into next year, leading us to shift from a "neutral" to a "positive" view on equities overall.
Following their recent underperformance, we also believe that emerging market local currency debt and global real estate equities are offering attractive entry opportunities.
Watch the Global CIO video featured by Michael Strobaek, Global Chief Investment Officer at Credit Suisse: