Several reports by Credit Suisse have recently grabbed our attention. Over the past two weeks, they have left the general position of banks and have loudly proclaimed the beginning of the next bull run. While we’re not in line with that outlook, it is still interesting and potentially relevant for investors to consider this somewhat contrarian stance.
In a Reuters article of September 13th 2019, Credit Suisse is reported to be bullish on UK stocks, since they see them as “cheap”.
In another article by Bloomberg, also from September 13th, Credit Suisse Group’s wealth management arm is said to have raised global equities to overweight from neutral, even as other firms are reducing holdings amid economic growth concerns. The reasoning is interesting: “Renewed prospects of a U.S.-China trade deal, diminishing political risk in Italy and the U.K., and additional stimulus measures by central banks globally suggest equity markets will benefit”, Credit Suisse’s Global Chief Investment Officer Michael Strobaek said in an investment note. Taken as a combined force, these are quite bullish considerations, the bank argues.article by Bloomberg, also from September 13thIn another
While we consider expanding equity positions a risky move at this stage – at BFI Infinity, within our own BFI Capital Group, they have turned cautious about equity positions, and in many cases have implemented downside protection with their clients’ portfolios - there is some logic behind the bank’s arguments. Although this outlook does go against the grain and seems to us overly optimistic, it is still an analysis worth considering.