Interview with Burkhard Varnholt: Inflation is at a new high
There appears to be no end in sight for the post-COVID-19 economic upturn. In Europe and the US, inflation is at its highest level for years. "It's the main thing investors want to talk about," says Burkhard Varnholt in the interview and he explains the role supply chains and electricity prices play in this.
What supply chains and electricity prices have to do with inflation
One topic is attracting special attention at the moment in Credit Suisse's Investment Committee: inflation. That's no surprise given that it hasn't been so high in Europe for the last 13 years. And in the US it's even reached a level of 5.5% – the highest for 30 years.
This high level of inflation is being driven by supply chain interruptions and recent trends in electricity prices. But how lasting will these inflation drivers be? Burkhard Varnholt, Deputy Global Chief Investment Officer at Credit Suisse, gives his views on this in the interview with Xenia Tao.
Inflation is leading to uncertainty – but equities still remain attractive
Despite the fact that the economy is in a good position at present, Burkhard Varnholt puts the overall assessment for return prospects in perspective: "A year ago, we would not have predicted that this year would be as successful as it has actually been – which is why we must be cautious." Nonetheless, he speaks of solid returns for global equities. He reveals in the interview how things look for the other asset classes and the position of the latter compared to securities.