Share prices are ‘certainly not cheap’ and the markets are pricing in a ‘perfect v-shaped recovery’ according to Christian Nolting.
Nolting, Deutsche Bank’s CIO within Global Wealth Management told Bloomberg Television that the combination of reopening of economies, low interest rates and fiscal measures is giving confidence to investors who are banking on a ‘perfect V-shaped recovery’.
Although Nolting himself would be ‘very surprised’ to see such a rapid recovery and expects setbacks to occur in the coming months.
In terms of what this means for investors, he is of the view that over the past week or so there has been a transition out of growth stocks and into value stocks. His suggestion to investors is to have their portfolios focused around shares with resilient revenue streams but also support that with promising growth shares such as technology businesses.
You can view Nolting’s interview with Bloomberg below: