Credit Suisse Says Equities Should Regain Their Footing In 2019

(RTTNews) - Swiss banking giant Credit Suisse Group AG (CS) Tuesday published its Investment Outlook for 2019, which noted that equities should regain their footing in 2019, as the economy weathers various risks and expands.

The company 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 GDP 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 (Fed). This also suggests that the USD 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."

Separately, Credit Suisse said its Asset Management division has made a donation to ETH Zurich in the field of robotics. The partnership will strengthen the mutual dialogue between academia and the financial industry.

Credit Suisse Asset Management is entering a strategic partnership with The Institute of Robotics and Intelligent Systems or IRIS to support an additional professorship in the field of robotics, a thriving field of global impact.

The partnership with ETH Zurich includes a donation of seven million Swiss francs over a ten-year period enabling the university to set up a professorship and further expand its competences in world-class robotics and beyond.