Investors would be smart to remain bullish on equities in 2019, but should start switching to longer-duration U.S. bonds, Credit Suisse Group AG said in its investment outlook.
“In a late-cycle phase, equities typically continue to outperform most asset classes,” Michael Strobaek, Credit Suisse’s global chief investment officer, and Nannette Hechler-Fayd’herbe, global head of investment strategy, said in a note. “Thus, equities should still be favored unless valuations become too stretched or a contraction takes shape. However, U.S. investors should begin to lengthen bond duration.”
