Where To Park Your Money In 2019

It was an undeniably terrible year for equities, but experts are not completely writing them off in 2019. Other opportunities also lie in the oil services sector, U.S. regional banks, and attractively priced Japanese companies.

Investment analysts and asset managers began 2018 with a bullish outlook on equities, but most equities have languished during the year, amidst heightened uncertainty and volatility. Experts have not written off equities entirely in 2019, seeing investment pays in China, Europe and the U.S.; but some signaled the need for a broader scan of the market as opportunities ranging from the oil services sector, U.S. regional banks and attractively priced Japanese companies arise. For investors desiring safety, a shifttowards defensives and EM bonds could offer some protection amidst signs of weakness amongst tech giants like Facebook, Apple, Amazon, Netflix and Alphabet’s Google (FAANG), rising interest rates and continued global trade tensions.

“Most equity markets have performed poorly in the first 10 months of this year. It wasn’t a great year from most asset classes either. This was due to a host of factors including tighter US monetary policy which contributed to a stronger U.S. dollar and caused a sharp pullback in Asian currencies and asset markets,” said Vasu Menon, vice president and senior investment strategist, wealth management at OCBC Bank.

Menon reckoned investors need to ready themselves for a “very bumpy” ride in 2019, which will require investors to steer away from concentrated bets in sectors or regions. “It’s best to still diversify across asset classes and regions and also to time-diversify by buying gradually over the course of 2019 instead of trying to time the markets.”