Corporate Press Release

Press Release

Credit Suisse: 2011 global outlook stays constructive; overweight equities, commodities and real estate with focus on inflation and growth themes in Asia

Credit Suisse Private Banking division expects global economic recovery will become more self-sustaining in 2011 as robust emerging market demand, near-zero interest rates and high corporate cash will support global growth. Credit Suisse Investment Committee recommends overweight in equities, commodities and real estate and underweight fixed income. Asia is expected to sustain solid GDP growth of 7.6% in 2011 with inflation and asset bubble risks fuelled by QE2 remaining the key macro concerns. Under Credit Suisse's base case scenario of a policy-induced soft landing in China, the Asian equity markets are forecast to deliver aggregate upside potential of 19% amid a positive economic and earnings cycle and favorable liquidity conditions. Well supported by robust growth outlook and widening interest rate differentials, Asian currencies are expected to further strengthen against the USD. Positioning for 2011, Credit Suisse Private Banking division recommends investors to focus on beneficiaries of emerging market growth, American regeneration, historic-high corporate cash, rising inflation, higher interest rates and a weaker USD.