VP Bank Investment Outlook for 2019: Investors to mitigate risk as global economy paints a picture of uncertainty

Dr Felix Brill, Chief Investment Officer, VP Bank Group says stay invested within your risk capacity and avoid concentrated risks with diversification across asset classes.

As part of its 2019 Global Investment Outlook, Liechtenstein-based boutique private bank, VP Bank, forecasted a year plagued with uncertainty in the global economy, as political uncertainties continue to weigh on economic sentiment. As the global economy shifts into lower gear, slower economic growth is also anticipated. Assessing the year ahead, Dr Felix Brill, Chief Investment Officer, VP Bank Group said, “Investors should stay invested within their risk capacity and avoid concentrated risks. It is also timely to consider diversification across asset classes. Adding gold within one’s portfolio will also be an effective hedge against financial risks for investors. Investors should keep some dry powder to capitalise on opportunities when it arises, while assessing the credit risk exposure.”

Brill is also bullish on investment themes such as the China Consumer Basket and Global Healthcare. He said that China has been in a phase of transformation for several years now and its economic growth should be based more broadly on domestic consumption and less on the country’s still enormous export surplus. The aim is to make China less dependent on global trade, and evolve to a services-oriented economy rather than just a low-cost production site. Based on China’s foreseen income growth, changing demographic conditions, and also upcoming technological developments and modern consumer trends, VP Bank identified six industrial sectors that should benefit in the coming years from particularly strong demand. He also noted that opportunities abound for investments involving global healthcare where new challenges and the torrid pace of technological change, are driving a highly dynamic trend that portends above-average growth potential.

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