Global Head, Citi Private Bank
December 5, 2017Posted InInvestment Strategy
To best view Citi Private Bank's site and for a better overall experience, please update your browser to a newer version using the links below.
Accelerating growth: profits and pitfalls. The global economic expansion can strengthen further in 2018, creating opportunities and risks.
I am delighted to share with you Outlook 2018, our annual publication that explains our latest investment themes and insights for the coming year and beyond.
This edition – which we have called Accelerating growth: profits and pitfalls – explains our view that the global economic expansion can strengthen further in 2018. For clients, we believe this may create opportunities but also risks, so we consider how to position accordingly.
While risky assets seem unlikely to deliver returns as strong as they did in 2017, we remain bullish. We recently raised our tactical allocation to equities and reduced our recommended exposure to fixed income. We now believe that the most attractive opportunities lie outside the US and urge clients to ‘go global now’.
Our most important message in Outlook 2018 concerns portfolios as a whole. Despite our best efforts, many clients do not follow the vital principles and practices that have helped some families remain among the world’s wealthiest for generations. We therefore revisit these and highlight the risks of failing to create and follow an appropriate long-term plan.
We also present four key investment themes for the year:
Core income strategies
Even in today’s world of very low interest rates, we believe there are opportunities to seek yield and diversification. As well as fixed income investments, we see yield potential in select alternative assets.
We believe that emerging markets may offer long-term outperformance potential. But many investors may have not recognized this potential and do not have enough EM exposure.
After 2017’s unusual calm, we expect an increase in market volatility in 2018. We believe now is the time to help enhance portfolios with hedges and other strategies designed to assist with protecting wealth.
Ongoing disruption across many industries continues to create selective investment opportunities. Healthcare is among those where investors may not fully appreciate the transformation underway.
Please click here to view our Outlook 2018 homepage.