Outlook for the global financial markets in 2016
There is now a marked cyclical divergence between the developed and emerging markets, and this will hold back worldwide economic growth. In contrast to 2015, Bank Julius Baer’s experts anticipate no carrying winds from lower commodity prices or from monetary stimulus in 2016. This will make the world economy more susceptible to external shocks, which in turn weighs on the outlook for market performance. That, however, is no reason for investors to draw in their sails too hastily, since the prospects for internal consumption in the developed economies offer attractive opportunities for investment. Given the international orientation of many Swiss companies, Swiss investors can generally continue to concentrate their investments on their domestic market. The two key exceptions here are high tech and pure emerging-market investments, the latter being an area which Julius Baer’s experts expect will offer uniquely attractive entry opportunities during the course of 2016.
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