Credit Suisse faces share-price turbulence, as fear sweeps the market
As the markets plunge into a sea of turbulence, one of the biggest European banking institutions, Credit Suisse, is finding itself amidst a storm as its share-price tumbles. Fear has been sweeping through the investing community, with investors facing an uncertain future. But what exactly led to this dramatic downturn in the financial sector? Let’s take a closer look.
1. Credit Suisse: Falling Shares in Turbulent Times
At the start of 2020, Credit Suisse’s stock was flying high. Achieving record heights not seen in years, the Swiss banking giant was making headlines as word of their success spread. But ever since the markets took a turn for the worse in March, Credit Suisse’s shares have been plummeting. And with the markets in a state of turmoil and no end to the pandemic in sight, will their stock recover or sink even deeper?
The fall of Credit Suisse follows a wave of other stocks experiencing dramatic drops. In the wake of declining global markets and the overall uncertainty of the time, it begs the question: what does the future have in store for the banking institution? It’s possible that the company will be able to regain its standing, but only time will tell.
- Potential Impact of Coronavirus on Credit Suisse’s Stock
- Rising Global Markets and the Future of Credit Suisse
The coronavirus has had a serious effect on the global economy, including that of Credit Suisse. Businesses have taken a hard financial hit and some have shuttered their doors completely, which is bad news for banks that rely heavily on investments and transactions for profits. While Credit Suisse has weathered some of the initial difficulties, the level of volatility present in the markets makes it unclear how resilient the company will be.
The future of Credit Suisse could go in any direction. If it can ride out the crisis, the future may be bright. But if the markets continue to remain quagmired and unstable, the rising of Credit Suisse’s stock may remain nothing more than a pipe dream. Whatever happens, one thing is sure: the world is watching closely.
2. Fear Factor: Share Prices Suffer from Market Upturn
One of the most common investopedia mantras is “buy low, sell high.” Sounds great. But for investors, it’s easier said than done. When markets start to turn around, there is often an emotional rollercoaster at play that can affect share prices.
When markets start to increase and the future looks promising, investors feel joy and an eagerness to buy-in on the surge. Prices go up. Then reality sets in. Investors panic; they worry that the market will crash again shortly, and they start to sell their share prices. Despite the potential long-term payoff, the fear of market downturns prevents some investors from buying.
- Cost of Fear: The cost of fear can be significant, turning around and sharing in the potential of a market uptick.
- Risks: It’s natural to think about risks and be risk-averse when investing in volatile markets, but it can lead to missing out on huge gains.
- Time matters: Time is of the essence when investing. Delay and the opportunity to make a profit can be gone.
3. Credit Suisse: Steering Clear of Disastrous Rocks Ahead?
It appears that Credit Suisse has decided to stay away from rough waters. The company recently announced its plans to close its risky trading businesses and focus on asset management and wealth management activities as part of its 2019-21 strategic plan. Credit Suisse’s move implies confidence about the difficult markets in the near future.
One key element of the strategic plan is to weather Stormy Weather. Credit Suisse seems to want to avoid investing in markets with a volatile future, choosing instead to focus in investments where it has an edge in terms of insight and an understanding of how the market is changing. To that end, the company outlined a number of initiatives intended to create sustainable growth and stability over the next two years, including shifting its portfolio towards safer investments and cutting costs.
- Reducing Risk Exposure: Credit Suisse plans to minimize its risk exposure by closing its non-strategic trading businesses to focus its financial capital in more profitable areas.
- Growth Strategies: The company plans to focus its efforts in the asset management and wealth management businesses, where its expertise will be put on display.
- Cost Cutting: Credit Suisse stated its intention to create a more efficient organizational structure, focusing on cutting costs to generate greater returns for its shareholders.
4. Recent Volatility: Managing Risk Amid the Turmoil
The past few weeks have been trying times for investors, as recent volatility has upended the markets. Trying as it may be, it’s vital to stay focused and take the right steps now to manage risk.
Here are a few tips to cope with the turbulence:
- Resist the Urge to Panic: Oftentimes, the knee-jerk reaction to a downturn is to make drastic decisions that end up being detrimental. Take a deep breath, stick to your plan and maintain your long-term perspective.
- Look for Opportunities: In times of volatility, there are also chances for investors to capitalize on fluctuations in the market. Research and identify businesses with sound fundamentals to invest in for the long run.
- Optimize Your Portfolio: Investing in a diversified portfolio can help you ride the waves of market movement. Adjust the weighting of investments in accordance with your objectives and circumstances.
With smart decision-making and a set plan of action, you can weather the storm and attenuate any long-term damage to your portfolio from recent volatility. …
The high-stakes gamble on Credit Suisse has left investors and traders alike feeling uncertain. Despite the turbulence, the Swiss banking giant remains a powerful presence in a volatile market. With their unwavering ambition, team of experts, and decades of experience, one thing is clear: the world will be closely watching to see what Credit Suisse does next.