Sarasin says time to buy
Switzerland's Bank Sarasin is urging investors to start moving cash from safe havens to riskier assets, including equities and corporate bonds.
Burkhard Varnholt, the bank's chief investment officer, believes the yields being offered by blue-chip stocks and high quality corporate bonds represent an enticing opportunity for investors.
"It is now possible to buy into corporate bonds and equity assets today on massively enhanced yields that are well in excess of cash and short-term government debt meaning it will be possible to lock into long-term redemption returns that would in a stroke satisfy the goals of many final salary pension schemes, charity portfolios and private investors," he said.
Some large, blue-chip stocks were particularly attractive, he added, given the dividend yields they offered. While Sarasin is steering clear of emerging markets equities he said the bank was buying stocks in greater China as it saw the potential for a swift rebound.
Sarasin has also been selling government bonds and buying high quality corporate debt.
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