Credit Suisse: How we're playing this sustainable rebound in China
Technology is the standout stock sector for the Credit Suisse multi-asset team, which favours the category despite its overarching neutral view on equities, says CIO Andrew McAuley. This hinges on the sector’s central role in accelerating trends already ramping up pre-pandemic, including remote offices and working, digital commerce and e-learning.
In terms of regional preferences, China stands head-and-shoulders above others thanks to its more advanced position on the COVID recovery curve.
McAuley points to the country’s industrial production growth of 5.6% year-on-year at the end of September as one reason for his team’s conviction. The strategy invests in Asia’s largest economy via a combination of funds, ETFs and targeted stock picks, particularly within technology.
Credit Suisse also maintains a neutral view on bonds, with an underweight to government debt where yields languish at historical lows. But McAuley likes investment-grade credit, corporate credit and emerging market debt. And closer to home, he tips Australian miners to pick up from early 2021, as local industrial production recovers post-pandemic.
Credit Suisse Private Banking specialises in asset diversification, holistic wealth planning, next generation training, succession planning, trust and estate advisory, philanthropy. Click on his name to stay up to date with Andrew McAuley's insights or hit the follow button.
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