Equity markets: Expected economic recovery raises hopes
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Credit Suisse House View: Hope is rising on equity markets     

The probability of an economic recovery is growing. Current vaccination campaigns against the coronavirus and economic policy measures are strengthening those hopes. That increases the potential returns on equity markets – especially in emerging markets. 

Many reasons to believe in an economic recovery

In the face of a deep recession, the past year was better for investors than expected. That is because global equity markets managed to generate double-digit returns in spite of the circumstances. They owe that mainly to the fiscal and monetary policy measures. Yet, how are things looking right now? "This year, we are expecting a situation in which the global economy can recover," says Tobias Merath, Global CIO Office at Credit Suisse. The economic assistance provided by governments and central banks and the effect of vaccination programs on the pandemic could prove to be a good recipe for growth. Watch this video to learn what other reasons there are to hope for a positive trend in the global economy in 2021.

Credit Suisse House View for January/February 

Tobias Merath talks about hope on the equity markets and the potential yields in emerging markets. 

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Emerging markets offer attractive investment opportunities

Investors who want to benefit now need to look toward Asia. Mainly, they should consider investments in emerging markets and, particularly, in Chinese equities. Tobias Merath knows: "Valuations are cheaper, the economic recovery is a little more advanced, and these countries have handled the pandemic better." Accordingly, Credit Suisse is overweighted in this region.

Listen to the Credit Suisse House View with Tobias Merath to find out what the outlook is for fixed-income securities in 2021 and what exciting developments await investors.

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