News

December 21, 2018

Global Economy: UBS predicts deceleration in 2019

  • ..tasks Investors on global equities

    By Olayinka Ajayi

    Leading wealth/assets managers, UBS has tasked Investors on need to weather more volatility in order to capture opportunities in 2019.

    In its report for 2019, UBS stated : ” Global economic growth will decelerate next year from 3.8% in 2018 to 3.6% next year, and company earnings will grow at a slower rate.”

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    “A 2019 recession still looks unlikely, and the price of many financial assets has already moved to reflect uncertain prospects.”

    UBS further urged investors to diversify and hedge their portfolios to guard against volatility as well as political and other risks. “They should also take advantage of growth in fields like sustainable and impact investing, and pockets of value where financial asset prices are excessively low.”

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    The Chief Investment Officer at UBS Global Wealth Management, Mark Haefele stressed: “Investors should retain positions in global equities but plan for market volatility. A slight slowdown in economic and earnings growth doesn’t mean no growth, and the recent sell-off has left a number of assets more attractively valued, but investors must also take into account the tense geopolitical environment as well as monetary policy tightening.”

    To read the Year ahead in full, visit ubs.com/cio.