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Sarasin CIO sees opportunity amid crisis

Date: 24 Feb 2009

Burkhard Varnholt predicts that the worst of the global financial crisis will be over by the end of the year and highlights some appealing investment opportunities, including Chinese A-shares, convertible bonds and Asian currencies. He also sees companies from the power, food and water sectors as potential stock picks.

Keywords (click to search): [Sarasin] [CIO] [Burkhard Varnholt] [forecast] [Asia] [crisis]

Richard Morrow

The worst of the global financial crisis will be over before the end of this year and investors should look to take advantage of some of the biggest investment opportunities in a generation, says Bank Sarasin’s chief investment officer Burkhard Varnholt.

Speaking at a media briefing in Hong Kong today (February 24), Varnholt (pictured below) argued that the cause of the present crisis was lax monetary policy among western nations, with low interest rates propagating asset bubbles, first in tech stocks in 2000 and then in property in more recent years.

This led to hubris among banks and allowed unsuitable borrowers to take out mortgages that were then packaged into structured instruments, says Varnholt.

But while many of the world’s biggest banks have major solvency problems, as seen by discussions about Citi’s potential nationalisation, Varnholt predicted that governments of the world’s...

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