Michael Strobaek: "Global growth should remain robust"
Global CIO of Credit Suisse, Michael Strobaek, on what investors can expect in the second half of the year.
As outside temperatures have heated up, so too has discussion around central banks tightening their monetary policy. The Federal Reserve (Fed) is expected to announce the start of its balance sheet reduction in September and also the European Central Bank (ECB) to use its September meeting to reveal plans for reducing its monthly asset buying, starting in 2018. Naturally, the markets have picked up on such discussion already, with bond yields reacting most markedly.
Opportunities in the Telecom Sector
Overall, we look back on a good first half, with bond and equity markets both recording gains as the global economy consistently grew . Growth is expected to remain robust going forward. The more hawkish central banks may limit upside for equities and bonds, but there are still opportunities, particularly in the telecom, in healthcare and energy sectors.
Despite our neutral stance on fixed income assets overall, credits remain attractive. Within alternative investments, we remain optimistic on commodities, especially energy, but recently took profit on our successful real estate view. Furthermore, our Supertrend "Silver Economy" offers compelling opportunities for long-term investors.