![]() Instead, they should be fully allocated and invested after deciding on how much cash they will need for the next five years. The mispricing of securities caused by COVID will be reversed.Ĭiti Private Bank recommends that clients not hold excess cash and wait for a ‘better entry point’. Earning negative real returns is harmful to portfolios Ĥ. A period of structurally low interest rates will diminish the value of cash and many fixed income investments. The impact of this next industrial revolution will generate great value for investors ģ. Innovation will accelerate, as will the adoption of technology. Employment and spending are also expected to rebound faster Ģ. The global economy is expected to recover more quickly from COVID than after a more typical large downturn. The report cites a confluence of four factors in calling for investor action:ġ. ![]() We’re also seeing increased investor optimism due to low global interest rates that will enable a full economic recovery.” “Our optimism this year is buoyed by strong financial institutions, high household savings, and growing confidence levels among businesses and consumers alike. “The investment opportunities in this new economic cycle will reflect many new realities, shaped by the impact of technology upon our lives during this pandemic, as well as upon the values that we share,” said Ken Peng, Asia Pacific Head of Investment Strategy for Citi Private Bank. The current edition of the twice-yearly report says 2021 will mark the beginning of a new economic cycle, one that has more powerful tailwinds than investors expect, and is advising clients to be fully invested. Hong Kong/Singapore – Citi Private Bank (CPB) today presented its 2021 Outlook: The New Economic Cycle Investing for a Post-COVID World to clients in Asia Pacific.
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