Global Chief Investment Strategist
December 5, 2017
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Accelerating global growth: profits and pitfalls. We expect an acceleration of late-cycle economic growth around the world in 2018. We believe investors should use this opportunity to build fully global allocations.
We believe the global economic expansion can strengthen further in 2018. This may create opportunities but also risks, in our view, 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.
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Read the full Outlook 2018 publication here.
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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.
We revisit the fundamental principles of asset allocation and best investment practices that have helped keep some investors among the world's wealthiest for generations.