By Rudi Filapek-Vandyck<\/p>\n
In case anyone\u00a0is still surprised: global investor confidence has just hit a new peak. Equity strategists at Credit Suisse, home of the CS Global Risk Appetite Index, report their index has climbed to a new 20-year high. The index now shows what looks like a lonely mountain in euphoria territory with one antenna sticking out on the right hand side, reaching above everything else from an already elevated position.<\/p>\n
Having said that, on the broker’s long-term measure of the G5, the equity to bond returns ratio is now one standard deviation below trend, meaning equities still remain cheap relative to bonds.<\/p>\n
Credit Suisse agrees with what seems to be a ruling market view that the Federal Reserve is likely to raise US interest rates at this week’s meeting and decide it’s time for a pause from\u00a0then on. However, the broker believes that this is not the end of Fed tightening and expects a resumption of US tightening at some point. Following a pause at 5%, Credit Suisse thinks a further "snugging" of US interest rates to 6% is likely throughout 2007.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investor confidence as measured by Credit Suisse has reached a new peak. Equities are still regarded as cheap compared to bonds.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/51548"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=51548"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/51548\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=51548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=51548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=51548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}