Private banking CEO roundtable: What have you been advising your clients with regards to equities investing given the volatile markets?

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Private banking CEO roundtable: What have you been advising your clients with regards to equities investing given the volatile markets?

Private banking CEO roundtable participants


PdW, Deutsche For those clients with a long-term investment horizon, this is not a bad time to start increasing equity exposure, but it could get worse before it gets better. Companies with a global footprint should be preferred. By contrast, we would not recommend a high equity exposure for shorter-term investors. Indeed, most of the markets are driven by political decisions, which are difficult to forecast in the short run.

TK, Barclays We are encouraging clients not to be too short-term oriented and to keep a steady hand. We are long equities in a strategic asset allocation.

JF, Citi We are advocates of equities where returns are delivered sooner rather than later, such as through dividends. Multinationals that have an emerging markets presence, stable cashflows and earnings, and will grow over the next 20 years would be another sector.

GL, RBC We are recommending an overweight position in equities. While there is the possibility of a recession in Europe, we do not see that happening in North America, and a global recession is unlikely. Long-term interest rates are also unlikely to spike up, so that supports equity prices.

SM, BNP Paribas Since August, we have been very cautious on all equity markets, advising clients willing to take more risks to invest in structured products and derivatives to benefit from the high level of volatility.

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