JB Tracker Certificate on the Top 10 Stocks for 2018
Our equity market outlook for 2018 is constructive. Markets are characterised by the most synchronised growth upturn since 2010 and the macroeconomic backdrop is still supportive for equities. As global growth still boosts earnings, we believe that the risk of a global recession is rather low in 2018 and an economic slowdown is only expected for 2019.
Even though equities might now be entering the latest stage of the bull market, this has often proven to be the most powerful stage. The likely continued strength of earnings growth and the still high equity risk premium should encourage inflows into equities. Valuations are still in neutral territory and we see absolute earnings growth and general upside revisions.
Based on this, we think that developed equity markets might be carried to new highs in 2018. Equities remain our most preferred asset class and we recommend staying overexposed.
Julius Baer Equity Research has selected their ten favourite stocks from a bottom-up perspective. For investors who wish to invest in all ten stocks, we have created a tracker certificate.
The certificate is available in USD, EUR and CHF and is in subscription until 19 January 2018, 12:00 CET.