A new year brings new optimism, so it’s an ideal time for people to update, or create, their savings and investment portfolio.
The decision to form good money habits is another great resolution that many of us will benefit from, in 2019 and beyond.
How did the equity markets perform in 2018?
Looking back on this year, most of the equity markets have under-performed in what has been a disappointing year for asset returns. So, moving into 2019, we should be looking for attractive valuations and bargain prices that can make good entry points for long term investors.
Savvy investors will see opportunity in markets that are currently in a slump but are expected to perform strongly over the longer term.
The European markets under-performed this year, so we might anticipate they will do better in the following year or so; Asian and emerging markets have also performed poorly, and whilst a strong US dollar may be a threat, there are undoubtedly attractive valuations in these markets as we move into the new year.
What we want to achieve from our money depends on our individual situation, our approach to risk, and our future plans, such as: do we intend to stay in the UAE, will we move to another country, or retire back home?
When we’re planning to invest, it’s best to diversify. We can’t predict the future, and we don’t know which will be the best performing asset class in the year ahead. We should allocate part of our money to fixed income and traditional bonds, which will be at the safer end of our portfolio. Then we should also have some exposure to quality equity funds, which are likely to have greater volatility in the year ahead, but also higher expected returns in the long run.
markets are also prone to fluctuation, and it makes sense for investors to minimise currency risk as much as possible. Now
is a good time to kick-start your international investment portfolio, and plan
for the future by aiming for funds that could be on the up after a difficult
GWM’s team of financial experts advise clients wanting to create a range of portfolio investments, as well as regular savings that cater to both long and short-term financial needs.
It is important for UAE-based investors to have a strategy, be aware of changes in the market, consult expert advice, and be prepared to diversify accordingly.
Roy’s financial career started twenty-five years ago when he completed his MBA in Finance. After many years in Asia, Roy has built a reputation as an industry leader, based on technical knowledge, attention to detail, and client empathy.
Prior to joining The GWM Group and relocating to the Middle East in April, Roy’s excellence as an adviser was recognised when he was named “Best Financial Planner, Financial Advisory (Open Category)” at the 2018 Financial Planning Association of Singapore Awards.