Michael O’Sullivan Recommends Safe Havens for Middle East Investments

Michael O’Sullivan is head of portfolio strategy and thematic research at Credit Suisse. He is also an independent member of the National Economic & Social Council, the advisory council to the Irish prime minister, and he published an article in The National discussing how past examples of regime change may show “Arab Spring” countries how to avoid economic pitfalls that could derail their efforts at political change.

In a recent interview with Professional Wealth Management magazine, Mr. O’Sullivan discussed the importance of considering the economic environment when selecting safe haven investments. During extreme market events, safe havens can become too popular and too overbought, which is when Mr. O’Sullivan and Credit Suisse emphasize the positioning and valuation risks to their clients.

“We stressed caution when gold reached $1900/2000 per ounce,” notes Mr. O’Sullivan, who also said that his firm will “sound the alarm on German bonds when their yield is being compressed down.”

For investors looking to protect their portfolio against political instability in the Middle East, Mr. O’Sullivan recommends “out of the money call” options on oil.

Michael O’Sullivan’s session at the Third Annual Middle East Investment Conference will focus more on the economies of the Arab Spring countries as he discusses “Economics of the Arab Spring: Lessons from the Past and Ideas for the Future.” You can register to attend the event to hear from Mr. O’Sullivan in Doha, Qatar, on 25–26 March 2012, and follow this blog for more speaker updates as the conference draws closer.