Choosing the best investments for 2019 is likely to be complicated even more than usual due to the impact of Brexit and possible cuts to the UK economy. Investors have experienced lower returns and higher levels of volatility from some of the mainstream equities for quite a while now, so if you’re looking for the asset classes likely to perform throughout 2019, the following information may help.
Asset classes to consider
Many analysts are forecasting a bear market for 2019, which means investments in stocks should be carefully researched prior to any heavy cash deposits. This is one of the factors leading many existing investors to comment that their cash weighting for 2018 and into 2019 is the heaviest it’s been for years.
Holding onto cash may be a good idea for a short time, particularly if investment worries are causing anxiety over which asset class to choose. However, over the longer term the value of any cash held is significantly reduced due to the impact of inflation and the low returns that can be achieved.
With statements from Morgan Stanley to the effect that 21 global asset classes are currently negative in real terms, it does seem that holding cash may have been a reliable 2018 decision for many investors, however.
Some asset classes you might want to look into include:
- The UK film industry (click here to find out more)
- Diversifying into fine art and artwork (click here to find out more)
- Local currency emerging market debt is also forecast to be a winner through 2019, with anticipated gains of around 3.75%.
- Commodities and developed market equities are also forecast to offer gains of around 4% in 2019.
Emerging market equities are forecast to be a growing asset class over the next five years, offering potential for huge returns. An annual report on expected returns from Robeco forecasts returns of around 4.5% for emerging market equities, while major asset classes are forecast to provide just average returns.
Is there going to be a global recession?
Fears of a global recession are expressed within the Robeco study, and you can read more details online (https://www.investmentweek.co.uk/investment-week/news/3063370/which-will-be-the-best-performing-asset-class-over-the-next-five-years).
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