28th Nov 2018 08:35
ZURICH (Alliance News) - Credit Suisse Group AG on Tuesday published its Investment Outlook for 2019, which noted that equities should regain their footing as the economy weathers various risks and expands.
The Swiss bank noted that 2019 will be characterized by continued global economic growth and contained inflation despite a number of risks. The focus will be on assets that benefit from the factors extending the economic cycle.
In 2019, global gross domestic product growth is likely to soften somewhat to 3.1% from 3.3% in 2018, mainly due to fading policy stimulus in the USA and policy tightening in EM ex-China.
Credit Suisse expects inflation to remain moderate, which reduces the risk of excessive policy tightening by the US Federal Reserve. This also suggests that the dollar will be more stable than in 2018, supporting EM rebalancing efforts.
Michael Strobaek, global chief investment officer of Credit Suisse, said: "2019 looks set to be another year of growth, albeit at somewhat lower levels than in recent years. Given ongoing economic growth and monetary policy normalization in developed markets with no immediate threat of contraction, we expect risk assets such as equities and EM hard currency bonds will likely recover their footing in 2019."