LONDON (Reuters) – Credit Suisse on Thursday moved to a “small overweight” on global equities, especially developed markets, saying the risk of a “very bad” economic outcome had come down significantly after the massive $2 trillion U.S. stimulus package.
“As investors will rarely buy the bottom in volatile markets such as these, the Investment Committee feels that there is merit in being an early mover rather than wait until a market bottom has become apparent for all,” said Walter Edelmann, the Swiss bank’s chief global strategist.
The U.S. fiscal stimulus and some unprecedented measures from central banks triggered sharp rallies in global stocks this week, sending investors rushing to dust-off models from the 2008 crisis to gauge the right time to buy stocks.
(Reporting by Thyagaraju Adinarayan, editing by Maiya Keidan)
