Video interview with John Woods: Coronavirus is weighing on growth prospects
The coronavirus is interfering heavily with industrial production in China and weighing on global economic growth prospects. Yet, the increased volatility on the markets ought to be short lived. What's more, there are still good investment opportunities in emerging markets.
Coronavirus will increase volatility for only a short time
The extent of the coronavirus outbreak has taken markets by surprise, causing problems for the global economy. That is because China, which has been severely affected, is responsible for roughly 30% of worldwide industrial production. "We therefore need to lower our previously optimistic growth outlook somewhat," says John Woods, CIO for Asia Pacific at Credit Suisse.
The situation is mainly having an impact on the industrial sector's recovery. It will be delayed by a few months but will take place no later than the second half of this year. What exactly does the coronavirus mean for investors? "If you take the development of the SARS virus as an example, then the higher volatility on the markets should not last very long," explains Woods. In an interview, the expert reveals whether investment strategies should nonetheless be adapted to the changing circumstances.
Emerging markets remain attractive
Good opportunities currently abound, especially in emerging markets. "The global economy is gathering speed and should lead to strong growth in those markets," says Woods. In addition, valuations of such investments are currently highly attractive, which is expected to generate higher returns. In the video, you will learn which emerging market investments ought to be especially profitable.