Large investment entities begin to release their forecasts on the economy and markets in 2022.
Swiss credit is once again among the first and its analysis and investment team announces that the shares “Will provide single digit returns in 2022”.
The revaluations will be more moderate than this year when double-digit averages have been seen after most of the assets have been replenished from the impact of the coronavirus in 2020.
The actions that were and continue to lag the most because of Covid-19 “They should emerge as rays of light”, like industries that benefit from secular growth trends, exhibit from the Swiss entity.
Economic growth justifies the purchase of shares
The bank’s experts consider that the risk premium offered by the shares “It is still more attractive than bonds”, despite showing greater caution for next year in equities.
Michael Strobaek, Chief Investment Officer at Credit Suisse sums it up like this: “The continued economic recovery justifies an adequate presence of stocks in portfolios.”
“Government bonds are likely to offer negative returns in 2022”They affirm forcefully, and regarding credit they estimate that the low spreads in investment grade and the high yield “will barely offset the risks associated with higher yields.”
Run away from traditional patterns
The investment entity prefers to keep eurozone inflation-indexed bonds and senior loans given the scenario offered by the debt market.
“Due to the low level of expected returns in fixed income, investors should look for strategies that follow non-traditional patterns to diversify their range of opportunities ”, complete Strobaek.
Credit Suisse notes that demand for raw materials will remain favorable in 2022 thanks to expectations of growth in industrial production worldwide, “above average”, and the need for restocking, according to Credit Suisse.
Brick as an alternative investment
EThe brick is still in command for the Swiss in alternative investments considering that the real estate sector “should continue to benefit from the environment of historically low interest rates and the continued economic recovery.”
The economic context “also continues to be favorable for private markets, while hedge funds should offer a modest return close to the historical average,” according to Credit Suisse in its outlook report for 2022.
For its part, Nannette Hechler-Fayd’herbe, investment director of private banking of Credit Suisse, añade that the pandemic “has highlighted the importance of thematic investments, which can capture long-term trends ”.
Relaxation of inflation and the dollar over the euro
The Swiss firm has also used its market analysis to communicate its macroeconomic estimates and ensures that economic growth in 2022 “will remain above trend and promises to be solid”.
The entity expects the world economy to grow 4.3 percent despite the withdrawal of stimulus that will be offset by interest rates that will remain at zero or close to zero in the main world economies, according to Credit Suisse.
By region, they estimate that the United States will register real GDP growth of 3.8 percent next year and expect inflation to slow to 3.9 percent.
For the euro area, they project growth of 4.2 percent, while the common currency “would start the year quite weak against the dollar., but it will stabilize and recover ground later on depending on the monetary policy measures of the European Central Bank ”.