Shares world wide are consolidating and there may very well be extra losses forward, says Credit score Suisse’s Ray Farris.

The information is turning into “a lot choppier” as world development momentum approaches a peak, Farris, the agency’s South Asia CIO, informed CNBC’s “Squawk Box Asia” on Wednesday.

“We’re in all probability going right into a deeper correction in fairness markets globally,” Farris mentioned.

He mentioned, nonetheless, {that a} correction could current buyers with a “nice alternative” after shares globally kicked off the yr with a powerful begin.

By the top of the primary quarter, the S&P 500 stateside jumped practically 6% from its remaining shut of 2020. In that very same interval, the pan-European Stoxx 600 surged round 7.66% whereas the Nikkei 225 in Japan gained 6.32% and Hong Kong’s Hang Seng index jumped 4.21%.

“Our focus has been to not chase the market greater during the last couple of months,” Farris mentioned. “We have been very cautious to be caught at strategic weights for equities in portfolios as a result of we need to have the assets to make the most of a correction.”

He defined that within the 30 years as much as 2019, “the typical correction was about 14% however the common positive factors from that trough of that correction have been 39%.” Farris mentioned in 2020 the S&P 500 noticed a median correction of about 9%, whereas the following positive factors have been about 29%.

Markets in a whirlwind

Whereas many main markets posted sturdy first-quarter performances, equities have been unstable in current classes.

Source link