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Investors: get set for 2019, the year of living dangerously

18 0 5
17.12.2018

We are fast approaching that critical time of the year when investors must place their bets for 2019. It will be no easy task as investors face a battery of negative forces, adverse headwinds and a sense that the world is sinking into complete confusion. As if investors have not already been through enough hell and high water in the past decade, there is a prevailing sense that things are about to go pear-shaped again.

As markets become more focused on capital protection and risk aversion, investors will need to find better refuge. Next year will be a very tough one to stick your neck out for risk.

The seeds have already been sown for the next recession and the world seems oblivious. Stocks are priced way too high, risk and volatility are understated and safe haven trades are still mainly parked in neutral. World trade troubles, the threat of a US government shutdown, Brexit risks, euro uncertainties, the end of policy super-stimulus and emerging market debt worries – the list becomes endless. It is all helping a deeper gloom take root.

Over the past decade, central banks have fuelled a heady boom in share values and property prices by slashing interest rates and pumping up the global economy with virtually free money under the banner of........

© South China Morning Post