Interview with Nannette Hechler-Fayd’herbe: Economic upturn is causing the volatility of equities to soar
The economic recovery is continuing apace. Investors are asking themselves, "are we in a bubble already?" Nannette Hechler-Fayd’herbe states her position on the market situation. She explains why investors need to anticipate volatility on the equity market and what trends are to be expected on the bond market.
Rising interest rates making equities more volatile
The economic recovery is gaining momentum. The continuing policy of economic stimulation and the reopening of various sectors have driven equity markets higher. "However, things have progressed so far that interest rates are starting to reflect this optimistic picture," says Nannette Hechler-Fayd’herbe, CIO for International Wealth Management and Global Head of Economics & Research at Credit Suisse. As a result, we expect to see markets displaying a little more volatility over the next few weeks and months. Listen to the interview to learn how Credit Suisse factors that into its equity weightings.
Investments in the bond market are not very attractive right now
At present, bond investments are generating hardly any returns because of the rising interest-rate level. According to Nannette Hechler-Fayd’herbe, "that is always the case during periods of recovery." In this interview, the Head of Economics and Research reveals in which specific segments bond investors can nevertheless earn income.