Video with Michael Strobaek: Focus back on equities
What factors drove the strong first quarter in 2019? Michael Strobaek, Credit Suisse's Global Chief Investment Officer, discusses the reasons for this strong start and gives tips on how investors should position themselves in this environment.
Pause in capital market interest rates makes equities attractive
Capital markets got off to a good start this year. Investors were able to enjoy historically strong returns. Michael Strobaek, Credit Suisse's Global CIO, knows why. "The key driver of the strong markets was the US Federal Reserve's decision not to raise interest rates," he says. In the video, Strobaek explains why the US central bank decided to hold interest rates steady.
The signaled interest rate pause brings new momentum to the equity market. Strobaek therefore recommends that investors position themselves with these types of investments in this growth environment. He stresses: "We need to get back to buying equities, we need to participate." He believes that US equities are particularly attractive. In the video, Strobaek explains why US stocks tend to outperform in the current environment.
Technology sector equities are trending
US equities are interesting, with a special focus on the technology sector. The Credit Suisse Supertrends also ascribe significant potential to US technology equities. This is because intelligent technologies drive the economy and revolutionize the way we work. The potential for growth is enormous, and investors can benefit.
For example, the use of technology in healthcare is especially promising. Medical software can be used to link databases and thus support doctors all over the world. There is also increasing usage of automated systems in agriculture. They are not only helpful in sowing and harvesting, but they also help to reduce the use of resources. Two trends with a future.