Sunny Outlook for Stocks this Summer: CIO
This will still be a sunny summer for stocks, according to the chief investment officer of Swiss private bank Sarasin, Burkhard Varnholt.
The BPoil spill crisis has not dimmed his outlook on the oil sector, Varnholt told CNBC in an interview Thursday.
"Corporate profits are good and there is a wall of money out there waiting for a new home," he said.
"Risk aversion remains high but with our clients holding 70 percent of their holdings in cash or short term bonds, we believe this is unsustainable," Varnholt added.
Oil stocks are still worth holding despite the crisis facing BP in the Gulf of Mexico, he said. BP shares opened lower in London , while the company's New York stock also closed down.
"We do not hold BP but like the energy sector which we consider to be a key component of our sustainable investment strategy. We hold Norway's Statoil and other stocks in the sector," Varnholt said.
Sarasin says his team is also very active in the water industry, with more and more of its clients looking for what he describes as sustainable investment solutions.
"We focus on the triple bottom line of profits and the social and environmental impact of a company," he said.
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Disclosure information was not available for Burkhard Varnholt or his company.