Credit Suisse Urges Investors

by Forbes Middle East Forbes Middle East - Business News

Credit Suisses chief investment officer Michael Strobaek has calmed the global investment community after the U.S. stock prices went into a freefall on Monday.

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On February 5, the Dow Jones Industrial Average crashed 4.6%, the biggest corrections since 2011. The market crash has taken the investors by surprise as it comes on the back of positive employment and wage data from the U.S.
However, many analysts believe that the current rally that took the stock indices to record highs was fueled by liquidity and not fundamentals. The positive economic data sparked fears that the fed may accelerate interest rate hikes due to inflationary concerns. This led to the massive current sell off, where investors might have shifted their funds to fixed income instruments that would fetch them higher returns.