Credit Suisse bets big on equity investment trends
Credit Suisse said it will help investors make long-term equity investments with six supertrends it has advocated and the strategy is highly relevant to Asia.
The global bank said it had designed its six supertrends – anxious societies, infrastructure, technology, silver economy, millennials' values, and climate change – to transcend business cycles in order to offer investors multi-year equity investment opportunities.
All of the supertrend themes are mapped to the 17 United Nations' Sustainable Development Goals (SDGs), which are a guiding principle for economic activity and development and, increasingly, investing.
"Our strong diversification approach across the 23 supertrend subthemes is helpful when navigating turbulent markets," said Daniel Rupli, head of single security research at Credit Suisse.
He believes that their more defensive supertrends, as well as the long-term demographic trends in the silver economy supertrend, should prove less volatile this year than the growth-style themes in millennials' values and technology.
Asia has been and continues to undergo momentous structural changes like aging populations and a booming middle class, and the supertrends are highly relevant, according to the investment bank.
The climate change supertrend, for instance, is important for the Asia-Pacific region, Credit Suisse noted, citing estimations from the World Bank that a 1-meter rise in sea levels could displace 37 million people, of which 23 million from China alone.
The energy transition and related infrastructure are being fast-tracked in China's long-term development plan, according to the report.
The world's second-largest economy's commitment to the energy transition should keep business opportunities in solar, wind, and EV-related sectors well supported in coming years.