Michael Strobaek: "The bull market can continue"
After the market correction in early February, many investors are uncertain and scared of inflation. In the video interview, Michael Strobaek, Credit Suisse Global CIO, answers the most pressing questions.
After a strong start to 2018, clouds gathered on the financial market horizon in early February. The fear of inflation and a potentially more restrictive monetary policy from the US Federal Reserve has unsettled investors. "As a result, we have seen a simultaneous sell-off of equities and bonds. That is unusual," says Michael Strobaek in the video interview. However, the Credit Suisse CIO does not see a stock market crash, but "a healthy, maybe necessary, correction in a long bull market."
Although volatility could remain high for a few weeks, Michael Strobaek advises investors to buy – but with patience. "The 2018 stock market year may not be quite as good as 2017. Nevertheless, the bull market is still ongoing." In the video, the Credit Suisse CIO talks about the background to the fear of inflation, what rising interest rates mean for the economy, and why he is optimistic about investments in emerging markets.