Salient to Investors:

Credit Suisse cut reduced its allocation to stocks to neutral from overweight. Michael Strobaek at Credit Suisse said the fundamental environment remains attractive, but the markets are overbought, and the positive economic outlook and further supportive monetary policy are largely priced in, limiting upside in the near-term. Strobaek said the process of returning interest rates back to normal has just begun, signifying a tough environment for bonds and a potential advantage for stocks, which are poised to enter a temporary consolidation stage.

Adrian Zuercher at Credit Suisse said they sold mostly European stocks but still has a small overweight position, down from a strong overweight. Zuercher said they remain positive on European and global markets on economic recovery and a light at the end of the tunnel. Zuercher said the European market will decline more than others if we go into a technical correction, creating a buying opportunity.

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