Walter Edelmann in the video: Interest rate policy supports the global economy
Uncertainties are currently putting the global equity markets under pressure. Walter Edelmann, Chief Global Strategist at Credit Suisse, explains in the video why he is nonetheless optimistic about the future and how central banks in Europe and the US are supporting economic development with their interest rate policies.
Equity markets benefit from interest rate cuts
Weak economic data has left its mark on the markets recently. However, the weak growth should be limited to the industrial sector. In addition, the European Central Bank (ECB) and the US Federal Reserve (Fed) continue to support the markets. The measures are having an effect, says Walter Edelmann, Chief Global Strategist at Credit Suisse. "Long-term interest rates have dropped and financial conditions are improving again; this supports the economy."
In light of the positive outlook, the Chief Global Strategist assumes that investors' fears of a growth slowdown will soon subside. "That's why we currently find equities attractive and have overweighted them in the portfolios." The US market continues to show the best growth potential. In contrast, Walter Edelmann considers bonds to be generally overvalued. Find out why in the video.
Benefiting from positive economic development in emerging markets
Nevertheless, "diversification is important," says Walter Edelmann. Investors must also look to other regions to generate returns. The emerging markets are one example. This is because the macroeconomic environment of the emerging markets has been gaining in potential for some time, buoyed by growth acceleration and attractive valuations. Ideal conditions for investors who wish to diversify their portfolio.