The report titled, ‘Safeguarding assets: Building stronger portfolios for more turbulent times,’ highlights two key global developments that may affect portfolios in 2019. The first is the return to pre-crisis normalcy in the global monetary system and markets, and the second is the continued retreat from normalcy in politics and geopolitics.
Against this backdrop, the Private Bank believes the global economic expansion and bull market in risk assets can endure through 2019. However, given the late-stage of the US monetary tightening cycle and increased market volatility, it urges building stronger portfolios for turbulent times by investing in more resilient assets and by employing strategies that reshape investment outcomes.
The Private Bank also sets out three broad investment themes it thinks will likely influence portfolio returns over the coming years. They include putting cash to work in income-producing assets, safeguarding gains made over recent years via various investment strategies and diversifying globally, as well as building exposure to the rise of Asia, increasing human longevity, and digital disruption.
In addition to its themes, the Private Bank presents its thinking on an approach it calls Investing with Purpose (IwP). IwP seeks both to maintain portfolio quality and serve the greater good by delivering environmental, social and governance benefits.
“We believe 2019 will be complex and more volatile for our clients,” said David Bailin, Global Head of Investments, Citi Private Bank. “We therefore outline vital steps in Outlook 2019 to help mitigate risks and potentially enhance total return profiles. These include keeping a close watch on US monetary policy, especially its effects on the yield curve. We also recommend allocating to countries and companies that are likely to withstand the challenges now facing the world.”
The full report, a summary version, short videos, and other materials can be accessed via the Citi Private Bank website here.
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About Citi:
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