Those expecting a double-dip recession and a stock market crash will be disappointed, according to Credit Suisse analysts.
"Prices have fallen and value is returning to stocks," Giles Keating, head of research at Credit Suisse in London, told CNBC Friday.
"The world economy is slowing but will not fall off a cliff. The economy is still moving forward, equities will be OK going forward."
- Watch the video above to see the full interview with Giles Keating.
Investors should "start gently putting cash into play and buy on the dips. We are aware of the risks over the short term from sovereign debt and the banks but over 6-9 months things are different," he added.
Two fund managers told CNBC Thursday that European exporters are a good bet.
Stocks have value particularly against bonds, which yield just 3 percent in the US at the moment, Keating pointed out.
"The global economy is in recovery mode and earnings are growing rapidly between 10 and 15 percent," he said.
The key to any recovery will be emerging market demand, according to Keating.
"Having seen demand crash on the back of a lending binge in the US and Europe, the future of the global economy will depend on emerging market demand," he said.
"Like Henry Ford doubling wages so his workers could afford one of his cars, a similar trend is happening in China and will boost demand globally," Keating added.
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CNBC Data Pages:
- Dow 30 Stocks—In Real Time
- Oil, Gold, Natural Gas Prices Now
- Where's the US Dollar Today?
- Track Treasury Prices Here
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Disclosures:
Disclosure information was not available for Giles Keating or his company.
