Switzerland’s Bank Sarasin says demographics and risk aversion are pushing up bond prices to nosebleed levels, and that the real value lies in stocks.
“This is why interest rates are grinding lower and lower and lower as the G4 population grows older and older,” said Sarasin CIO Burkhard Varnholt on Squawkbox.
At the same time, deflationary trends will offer a great opportunity to invest in Western companies that are active in Asia. Varnholt’s picks include Coca-Cola, McDonalds, Nestle, and Unilever.
See here for our list of the 10 countries facing crippling demographic crisis.