A healthy US labour market may mean equities have further to go and professionals are also seeing opportunities in the high yield credit market at a time when cash may be seen as too expensive to hold.
Global fiscal policy and the varying firepower of central banks are key themes for investors to ponder this month, while strange moves in the bond and currency markets join equity “valuation potholes” among the risks to watch out for.
There is comfort in the “Balanced portfolio” label, but which assets should be included – and in which proportions – are vexed questions. Many investors could be taking on far more risk than they realise.
Recessionary fears are still top of the agenda as 2019 gets underway, and but canny tweaks to asset allocation may be warranted even if these are overblown. Some also see buying opportunities amid the melee, although some are keeping their powder dry.
Fears of recession are front of mind this December, but the bear market case warrants further examination, our experts say. There may also be investment opportunities to take advantage of as volatility stalks the markets.