It is my great pleasure to share with you Outlook 2017, our annual publication setting out our latest investment themes and insights for the coming year and beyond. Please click here to view the publication.
Entitled Late-cycle stimulus: Opportunities and uncertainty, this edition explores whether a shift towards fiscal policy in the US and elsewhere can help extend the mature global economic recovery. We believe that it can and therefore examine the opportunities and risks this might create.
Despite having gone slightly underweight in equities over the last year, we identify several markets and sectors that still look attractive. In fixed income, where we have reduced our underweight, we also see various possibilities globally. For investors willing to forego some liquidity, we stress the potential to seek higher returns beyond the public markets.
We highlight four key investment themes for the year:
Positioning for higher rates
A continued rise in interest rates would pose a clear risk to fixed income. Despite this, we still see a number of opportunities in this asset class.
The liquidity trade-off
Amid the current late-cycle environment, private equity and real estate valuations look high. But there are still compelling reasons for selective investments in these illiquid asset classes.
Allocating to infrastructure
Restoring, upgrading and building new infrastructure offers an opportunity for the global economy. Likewise, investing in infrastructure can potentially benefit portfolios.
The robotics revolution and other technological disruptions could have an impact on investment portfolios. Investors should prepare for both the opportunities and risk.
Please click here to view our Outlook 2017 homepage.