Alternative Market Briefing

Credit Suisse recommends defensive strategy, focus on Asia, equities, alternatives in 2012

Thursday, December 15, 2011

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Fan Cheuk Wan Bailey McCann, Opalesque New York

Credit Suisse Private Banking issued a statement yesterday calling for investors to use a defensive strategy throughout 2012. The firm cited sovereign debt risks and global growth concerns that are expected to last throughout the year as reasons for investors to go on the defensive. Researchers with the firm expect global growth to "bottom out," in the first half of 2012. This combined with the real prospect of a third round of quantitative easing in the US and Eurozone spell tough times ahead for portfolios.

Going into to 2012, Credit Suisse Private Banking "recommends to overweight equities and alternative investments and to underweight bonds and cash as the Euro debt crisis is expected to muddle through with the global economy in a sluggish expansion phase rather than a recession." The firm is advising investors to focus on Asia, moving into equities, credits and alternative with a focus on domestic demand and structural growth themes.

"As we enter into 2012, sovereign debt risks and global growth concerns will continue to dominate financial markets. After the European Union Summit of Heads of State last Friday made progress on the new fiscal compact to reinforce fiscal discipline and strengthen fiscal enforcement, we expect significant global headwinds are likely to persist, especially in the first half of 2012 when the markets will focus on the ratification process of the EU fiscal compact. Austerity programs across the ......................

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