Credit Suisse Says Factor in Chance of V-Shaped Bounce in Growth

Investors should be prepared for the possibility that the economy and markets might recover quicker than is currently priced in, according to Credit Suisse Group AG.

Value stocks, which tend to track economic cycles more than their growth counterparts, have started to shine after long periods of underperformance. Last week the Russell 1000 Value Index beat the growth gauge by more than two percentage points, and bested it the week before as well. While there’s debate about how quickly economies can recover from the pandemic, equity-derivatives strategist Mandy Xu said it’s worth building in that possibility.