Market Tips: Why Credit Trumps Stocks
As markets continued their volatile trade Wednesday, low-risk assets like U.S. Treasuries retained their luster, despite offering the lowest yields in decades. Betting on credit may offer better returns than stocks, some analysts say.
Watch the Commercial Paper Market
If you see the commercial paper market doing better, it means credit availability is improving. And that could signal a turnaround in the economy, says Hans Redeker, global head of FX strategy at BNP Paribas.
Credit over Stocks
In the current environment, look for assets that deliver more visible cash flow, suggests Al Clark, head of multi assets at Schroders. That is why he likes credit over equity.
Biotech Becomes Desirable
"We think that this is a great time to be invested in biotechnology and healthcare. And the reason for that is the valuations for the sector have come down significantly over the years. We are now at very, very reasonable valuations in an industry which is still generating a very significant growth… and we think that's really unique," Roland Maier, CEO of BB Biotech said.
Commodities Stocks to Rise?
Nirgunan Tiruchelvam, equities analyst at ABN Amro Asia Securities is bullish on commodities supply chain giant Noble Group. He tells CNBC why he sees an upside potential of 43 percent for this stock.
BoE Rate Cut May Boost Sterling
If the Bank of England cuts rates by 75 basis points on Thursday, the sterling could see a small rebound, predicts Harry Ida, senior analyst at Thomson Reuters.
Surprise in the Euro Zone?
The European Central Bank may surprise the market with a larger-than-expected 75 basis-point cut when it delivers its rate decision Thursday, says Jan Lambregts, head of research at Rabobank International.
Wait for Economic Recovery
At some point in 2009 you're going to have a fantastic buying opportunity for risk assets, but the global economy has to start to stabilize first, James Barty from Arrowgrass Capital Partners told CNBC.