Burkhard Varnholt video on market corrections in 2018
Another correction rocked the market at the end of 2018. Nonetheless, Burkhard Varnholt, CIO Switzerland at Credit Suisse, makes a positive economic forecast for next year. In the video, he explains why continued growth is to be expected.
The market experienced another correction at the end of 2018
At the end of the year, the market suffered yet another painful correction in 2018. However, this is nothing out of the ordinary, says Burkhard Varnholt, CIO Switzerland at Credit Suisse, because such developments tend to be faster and more dynamic going down than going up. "I count a total of over 60 such corrections of more than 5 percent and less than 20 percent in the past nine and a half years." Nevertheless, the upward movement is continuing.
The latest correction suggests that the profits for 2019 will be somewhat lower than for this year. Varnholt, however, remains confident in the economic forecast; even though the momentum of the world economy may slow down, continued growth and recovery can be expected. Burkhard Varnholt gives the reasons for this in the video.
Achieving success in asset management with structure
According to Varnholt, the market correction teaches that success in asset management depends less on individual forecasts and more on a structured investment process. The long-term money investment succeeds in particular when your own needs are clarified and the investment strategy is coordinated with them. Fundamentally, a diversified portfolio offers the best option for meeting these needs.
In addition to diversity, however, investor farsightedness also leads to greater success in asset management. Short-term trends on the markets are less advisable than long-term investment topics, such as the Credit Suisse Supertrends. Political changes, demographic transformation, and rapid technological progress are the basis for these.