Stocks and bonds look 'more interesting' in Asia than in the U.S., Credit Suisse says

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Strong economic recovery and cheaper valuations are some reasons why Asian assets are more attractive at the moment, according to Suresh Tantia of Credit Suisse.

SINGAPORE — Investors should look at Asia instead of the U.S. when it comes to stocks and bonds, an investment strategist told CNBC this week.

"Given the election risk in U.S. and more expensive valuations, I think the Asian markets look more interesting – strong economic recovery, strong earnings and much cheaper valuations compared to the U.S. equity market," said Suresh Tantia of Swiss investment bank Credit Suisse.is largely under control in other North Asian markets such as South Korea, Taiwan and Hong Kong, he said.on Thursday.

Pedestrians walk past a stock market display board showing the Chinese state-owned commercial banking company Bank of China from the Hang Seng Index results in Hong Kong.Fixed income assets are also more attractive in Asia because spreads are still "much higher" than in the U.S., Tantia said. "Asian bonds are offering yield of around 3%, compared to 2% yield in the U.S. We think there is slightly higher yield for similar rated companies in Asia," he said.Tantia also said the last quarter of 2020 is likely to be "choppy" for markets, but that investors should buy on dips.

 

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