Rarely, investment advisers are silent, but the situation on the market is exactly the same. The trade rhetoric between the US and China, as well as the unpredictability of President Donald Trump, make forecasting markets extremely difficult at present.
But everyone is unanimous – the volatility on the markets will remain in full force. This creates the opportunity to look for long positions of the VIX fear index every time the index falls to levels between 10 and 12.
Another spot where investors are looking for short-term profits are the inverse ETF, where there are serious gains this week.
Credit Suisse is underweight euro-zone equities on concern about growth and earnings. Bose sees Germany as “most obviously at risk” from greater global trade friction, but since these fears are partly reflected in valuations, has a positive outlook for the DAX Index.
Credit Suisse favors emerging-market debt and stocks and recommends that clients who are worried about trade tensions hedge their portfolios via the Swiss franc and the Japanese yen.
Source: Bloomberg Finance L.P.
Chart: Used with permission of Bloomberg Finance L.P.
Trader Nikolay Georgiev