Equities; Appetite for Disruption

In January the Credit Suisse equity strategy team published ‘’Global Equity Themes: Appetite for disruption.’’ Their analysts provided their view on disruptive risk faced by c2700 companies globally. In this short update they review the performance of the stocks selected at the time and update their “cheap & undisruptable” versus “expensive & disruptable” baskets. Their framework assesses risk faced by companies from 3 specific disruptive forces. These are 1) Competition/globalisation: e.g. “China as a threat” vs. the impact of a “multi-polar world” 2) Regulation: e.g. “Petrol and Diesel cars no longer allowed’’ 3) Technology: e.g. Automation to make 1 in 2 jobs redundant. The report looks to address the following question: Who’s at risk and is the market seeing this too. CS clients can view the full note on CS Plus.