Video: James Sweeney on why the global economy is gathering steam again
The health curve of the world's economy is likely to trend more strongly upward again in the near future. In the video, James Sweeney, Chief Economist and Regional CIO Americas at Credit Suisse, explains why investors should increasingly focus on equities.
Economic growth is likely to pick up again
Equity markets have had a turbulent year so far. It has not been an easy time for investors, who have been looking for safer investments. But prospects are improving. "Global economic growth is likely to pick up again next year," predicts James Sweeney, Chief Economist and Regional CIO Americas at Credit Suisse.
Low interest rates are a key factor. "The rate cuts by the central banks in Europe and the US will give the economy a big boost," says Sweeney. In the video, he looks at whether further measures to support economic growth can be expected.
Low bond yields are resulting in high risk premiums for equities
The current market environment offers good investment opportunities for investors – primarily in the equity markets. "As a result of the recent, sharp drop in bond yields, the risk premium on equities is very high," says James Sweeney. Equities therefore offer a better performance than bonds right now.
Equities nevertheless remain underweight in the portfolios of many investors around the world. In the video, James Sweeney, Chief Economist and Regional CIO Americas at Credit Suisse, explains why he is confident about the near-term outlook in light of economic and political developments.