And where will one find good buys? Growth won’t be nearly as good as value investing, one manager said.
“We’re very excited about the market. We see a lot of value in the market,” according to Colin Hudson, a partner and portfolio manager for Oakmark Equity.
“We think that next year could be a very good year,” Hudson said.
And besides value-oriented investments, where will there be good buys in 2019?
UBS officials secular investing themes that should do well include those investments that benefit from population growth, aging and urbanization as well as sustainable investing.
“Investors,” UBS officials wrote in their 2019 review, “could take advantage of the fact that a wealthier world is willing to spend more on ecological goods such as better air quality for its children. There is now ample evidence that sustainable investing doesn’t hurt your portfolio.”
UBS, in its publication, also said U.S. loans, emerging market equities and Japanese equities will be attractive investments. Other opportunities include U.S. and European energy sectors, UBS said. They are predicting that “oil prices will recover in early 2019.”
Martin Blessing, UBS co-president of Global Wealth Management, in a comment at the press conference on Wednesday, argued for global diversification as U.S. markets slow down.
UBS, in the 2019 guide, said that U.S. focused equity investments, which have outperformed global equities by about 50 percent over the past seven years.
But now, UBS said, that is going to change and U.S. oriented investors need to diversify. That’s because the U.S. outperformance is going to end.