The UBS Global Wealth Management's Chief Investment Office (CIO) has said that investors
will need to weather more volatility in order to capture opportunities in 2019, reports ITREALMS.
According to the Year Ahead report from UBS, the world's leading wealth
manager, global economic growth will decelerate next year to 3.6 per cent from 3.8 per cent in
2018, and company earnings will grow at a slower rate. However, a 2019
recession still looks unlikely, and the price of many financial assets has
already moved to reflect uncertain prospects.
UBS Global
Wealth Management's Chief Investment Office (CIO) enters the year with an
overweight position in global equities. However, as the market cycle matures,
investors should diversify and hedge their portfolios to guard against
volatility as well as political and other risks. They should also take
advantage of growth in fields like sustainable and impact investing, and
pockets of value where financial asset prices are excessively low.
Mark Haefele,
Chief Investment Officer at UBS Global Wealth Management, says: "Investors should
retain positions in global equities but plan for market volatility. A slight
slowdown in economic and earnings growth doesn't mean no growth, and the recent
sell-off has left a number of assets more attractively valued, but investors
must also take into account the tense geopolitical environment as well as
monetary policy tightening."
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