John Woods in the video: Volatile markets challenge investors
Geopolitical risks are shaking the financial markets, and recession is just a matter of time. But it's not yet on the horizon. John Woods, Chief Investment Officer Asia Pacific, explains in the video why and how investors can diversify their portfolios and benefit despite the volatility.
Recession is not a risk in the short term
The world economy is heading for turbulent times. The indicators are pointing to a recession in the medium term. Industrial production and manufacturing in particular will feel the slowdown, says John Woods, Chief Investment Officer Asia Pacific at Credit Suisse.
But he does not think that a global downturn is just around the corner. "There's a probability that recession might become more apparent in a couple of years' time," says Woods, "but we don't see it hitting over the next 12 months." He gives his reasons for this assessment in the video.
Diversify your portfolio to cover the risks
However, John Woods urges caution when making investment decisions owing to uncertainty on the markets. "These are volatile times," he says. He advises investors to diversify their portfolios. In addition, strategies are currently available for hedging business cycle risk in order to benefit even in the event of a possible economic downturn.
In the long term, he is focused on the Supertrends. Because these long-term investment themes are likely to underpin client portfolios over the next few years, too. You can find some of John Woods's other investment tips in the video.