Credit Suisse: Cautious on Equities, 'Overweight' Bonds

The video discusses market positioning ahead of US CPI data, emphasizing caution in equities due to valuation disconnects and interest rate concerns. It highlights opportunities in bonds and the potential catalysts for changing equity positions, such as inflation expectations and earnings developments. The discussion also covers geopolitical risks, particularly concerning Chinese equities, and the need for tactical investment strategies given market volatility.

What is the main reason for the cautious stance on equities?

• Strong corporate earnings

• Disconnect in valuations and interest rates

• Low bond yields

• High inflation rates

What could be a catalyst for moving away from underweight equities?

• Decrease in interest rates

• Increase in bond yields

• 10-year break-even inflation at 2%

• Higher corporate taxes

Which market is seen as having selective opportunities due to reopening?

• Japanese equities

• European equities

• Chinese equities

• US equities

What is a major concern regarding corporate margins?

• High volatility

• Market complacency

• Low interest rates

• Strong dollar

What is the market's current focus according to the discussion?

• Long-term growth

• Short-term deltas

• Geopolitical risks

• Corporate earnings

What recent geopolitical event is affecting Chinese equities?

• New trade agreements

• Trade war with the US

• US balloons trespassing over China

• China's economic slowdown

How is the Chinese market described in terms of investment strategy?

• Unpredictable and risky

• Low risk and long-term

• Highly volatile and tactical

• Stable and predictable