Bull markets: Equities remain the most attractive asset class
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Bull markets like this are a rare occurrence. Interview with Burkhard Varnholt

The financial markets are going through extraordinary times. The current bull market is proving to be amazingly resilient, despite the widespread doubts expressed by investors. In the interview, Burkhard Varnholt explains his view of the stock market situation and why he expects equities to remain the most attractive asset class in the second half of the year too.

Many investors doubt that the bull market will continue – are they right?

"We're living in crazy times!" This is how Burkhard Varnholt, Deputy Global Chief Investment Officer of Credit Suisse, summarizes the current situation in the investment markets, adding that he has only rarely experienced a bull market like the current one. However, when talking to investors, Burkhard Varnholt often hears doubts about whether the bull market can last in the long term. But he explains in the interview why it is precisely this skepticism that is exciting for the markets.

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Credit Suisse House View August / September 2021

Chief Investment Officer, Swiss Universal Bank and Deputy Global Chief Investment Officer, Credit Suisse

Equities remain the most attractive asset class

From other points of view too, there are many things that make it likely that the bull market will continue. "You cannot ignore the fact that the macro environment is extremely strong," says Burkhard Varnholt. First, the strong economic growth rate since the start of the year is evident in healthy corporate profits. Second, the increase in productivity in many places is also evidenced by growing margins. And so equities are likely to remain the most interesting asset class in the second half of the year too. By contrast, Burkhard Varnholt says in the interview why he is less optimistic about government bonds.

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