SUMMARY
With a global economic recovery taking shape, we seek to raise portfolio quality as large rebounds have occurred in lower quality assets most impacted by last year's economic shutdowns.
With a global economic recovery taking shape, we seek to raise portfolio quality as large rebounds have occurred in lower quality assets most impacted by last year's economic shutdowns.
Citi Private Bank’s Global Investment Committee (GIC) has left our asset allocation unchanged with an overweight to global equities and REITS stance remaining at +8%. Additionally, fixed income and cash remains at -8%.
As discussed in our Mid-Year Outlook, we expect to transition allocations away from positions held solely to benefit from post-pandemic economic rebound, towards opportunities for potential sustained long-term returns. Our actions already taken include downward shifts in US small and midcap equities and certain Emerging Markets in favor of global healthcare shares.
We see the healthcare sector providing the cheapest valuation for enduring, steady growth. We also see emerging pockets of opportunity in US and Chinese IT shares but see valuation challenges not completely resolved.
A first interest rate hike could occur 12-18 months from now under ideal economic conditions.
Looking forward, we are optimistic regarding a sustained economic recovery.