February 6, 2019

US, emerging markets equities likely to outperform this year

US and emerging market equities are likely to outperform this year even as earnings growth slows, Deutsche Bank Wealth Management Chief Investment Officer Christian Nolting said today in a television interview on CNBC.

"We think that the US will do quite well and also emerging markets, where we don't forecast a much stronger dollar" unlike during 2018, Nolting said during a two-hour guest host slot on the flagship Squawk Box programme in London.

While earnings growth has peaked, earnings themselves are still continuing to rise, he said.

Even so, "the environment is not as easy as it was," Nolting said, adding that investors may consider the counter-cyclical approach of selling equities when they rally.

In particular, "in Europe, we see lower economic growth -- there needs to be a trigger for Europe to perform a bit better."

Such a trigger could be the European Central Bank raising interest rates, however, that is unlikely to happen in 2019, he said.

Click the image below to watch a clip from the interview on CNBC.