The economy is rosy, markets robust as running bulls, long-winded conflicts are winding down and landmark trade deals are on the horizon.
In response, investors are nervous – some, nearly apoplectic with fear. We’ve said it before and will do so now to mark the new year: don’t be surprised, for this is the new normal.
An older generation never got over the Great Depression and 2008 is our watershed. Fortunately, expert advice and prudent judgement is a fine tonic for jittery nerves. Our featured article surveys some top industry brains for tips on how to perform in 2019, so let’s go.
Mohamed El-Erian, chief economic advisor at Allianz, believes you’ll need cash in hand this year. Bargains will show up that won’t wait, so have the funds ready to grab them. He warns against shifting into EMs too soon – maybe later this year, but right now, as the US is still the scene of the action.
Nicholas Sargen, chief economist and senior investment advisor at Fort Washington Investment Advisors, says he isn’t exactly bearish, but he counsels caution. Volatility makes sector-based investment decisions difficult, so bonds might be best for now. As the year develops, moving overseas or into EMs might make sense, he counsels.
At First Eagle Investment Management, Matthew McLennan, head of the global value team, cautions that investors should not expect the strong returns of recent years. Cash and gold look good right now in his opinion. Overseas markets still lack appeal, but that trend could shift as the year develops.
For more information, please read:
The Best Move You Can Make With Your Investments in 2019, According to 5 Market Professionals | Time