Equity markets back on the rise
Even though the economic recovery is just getting started, equity market prices were already up again as of late March. In our interview, Nannette Hechler-Fayd'herbe explains why and what opportunities bonds present for investors.
Equity market recovery continuing
After the sharp economic downturn caused by the coronavirus crisis in the second quarter of this year, we are now seeing the first signs of an economic recovery. The equity markets have been on the rise for quite some time, though. They have recovered since bottoming out in March and have since nearly returned to their pre-crisis levels.
This positive performance on the exchanges is the result of unprecedented stimulus measures to combat the crisis. "Policymakers have made it clear they are willing to use every means available," says Nannette Hechler-Fayd'herbe, Regional CIO for International Wealth Management at Credit Suisse. Investors can also assume more support will be provided if the situation escalates again. This suggests further upside potential in the equity markets. Watch the video to find out which sectors are likely to benefit over the course of the recovery and how investors should position their portfolios.
Bonds are benefiting from liquidity injections by the central banks
Good opportunities can also be found in bonds since the central banks are using bond purchases to pump enormous quantities of liquidity into the markets. "It's hard to fight this flood of liquidity," says Hechler-Fayd'herbe. She sees opportunities particularly in investment-grade corporate bonds and hard-currency emerging market debt. In our interview, Nannette Hechler-Fayd'herbe describes why it is hard to achieve good returns on government bonds right now and what medium-term risks she sees.