Global trade tensions and worries about an ageing market cycle dominate investors' concerns, going by a poll conducted at UOBAM's 2019 Investment Outlook Seminar held on 17 January 2019 at the JW Marriott Singapore South Beach. An average of 135 participants comprising local and regional distributors, institutions and financial partners took part, casting more than 500 votes in each poll.
While most investors do not expect a recession to happen this year, a majority think it will occur in 2020. Europe and the UK was the region they were most concerned about, followed closely by the United States, while the Asia ex-Japan region stood out as a bright spot. Investors were relatively sanguine about US Federal Reserve (Fed) policy with only a minority being concerned about tightening financial conditions. A majority of participants expect the US core inflation rate to be at 2%-2.5%, with the Fed expected to raise rates twice in 2019.
Traditional asset classes of equities and fixed income continue to appeal to investors with most opting to increase allocation to both of these asset classes, as well as adding exposure to alternative investments in 2019.
Participants also appear keen to adopt new trends in investment management. A majority viewed ESG (environmental, social and governance) considerations as at least fairly important when choosing investment products. In addition, while most participants have not tried robo-investing, a majority are interested to give it a shot in the next 12 months.
Here are highlights of the poll results.
