Navigating volatile markets

Panorama - Investing in 2019

21 Nov 2018

The double digit drawdown in global equities in October provided investors with compelling evidence, if it were needed, that the challenges they face globally as 2019 approaches have increased in both number and significance.

The aging cycle, reduced support from monetary policy, higher equity market volatility, trade wars, Brexit, European political risk and rising bond yields, to varying degrees all threaten risk assets. Throw in the perception of heightened emerging market (EM) vulnerability to desynchronized and moderating global growth drivers, higher US funding rates and a stronger US dollar – and the quandary facing asset allocators looks stark.

So how should investors approach the coming year given those challenges?