Citi Global Wealth Investments Issues Mid-Year Outlook 2022: Investing in the Afterglow of a Boom
After a tough start to 2022, Citi explores what may lie ahead for investors, highlighting quality and resilience in portfolios
The first half of 2022 has been especially challenging for investors, leading to increased uncertainty and concern. The global economy has endured a series of shocks over the last few years as COVID shutdowns, unprecedented stimulus, supply chain seize-ups and Russia’s invasion of
“Across developed economies, consumer prices have been rising faster than they have in decades. In response, policymakers are withdrawing the fiscal and monetary boost they provided when COVID struck,” said
"Inaction on the part of investors is like market timing. It rarely works. We believe that a fully invested portfolio has the potential to improve outcomes across difficult macro environments, like the one facing investors now," continued Bailin.
Beat the “cash thief’
For holders of cash, the repercussions of inflation are painful. Negative real interest rates are akin to a “cash thief,” who silently steals purchasing power year after year. Therefore, Citi Global Wealth warns that investors sitting on excess cash will likely be left poorer over time.
Citi Global Wealth thinks bonds are back
The recent rise in interest rates is good news for investors with too much cash.
Citi Global Wealth believes that bonds at today’s interest rate levels have the potential to add both income and diversification to portfolios. Municipal bonds,
Citi Global Wealth’s “Unstoppable Trends” – powerful multi-year forces that produce lasting change in multiple spheres – remain a core pillar of 2022’s Mid-Year Outlook. These trends include digitalization and the rise of
The digital revolution has far to go
While many growth-oriented investments have struggled in 2022, Citi also sees a compelling long-term case for the digital disruptors that are reshaping the world. Just as businesses need to embrace this disruptive process if they are to survive and thrive, investors should seek it in their portfolios.
Amid the weakness in digital disruptors’ equities in 2022, Citi sees potential to add portfolio holdings through selective exposure to cyber security, including cloud, identity and data security, as well as to leaders in the payments sub-sector. Payments remain a key focus within fintech, where profitability and higher dividend yields are more typical. For suitable investors, Citi favors digitalization-related strategies from venture capital, growth equity and hedge fund managers.
The rise of
Citi seeks exposure to the ongoing rise of
“We’ve adapted for a world of scarcity, allocating capital to produce more of the commodities of greatest need. We’ve made important adjustments in our tactical asset allocation in 2022 to position for the risks and potential opportunities that we see ahead, believing the global economy can weather the storm,” said
Citi Global Wealth’s full Mid-Year Outlook 2022 report, a summary version, short videos and other materials can be accessed here.
About Citi Global Wealth:
Citi Global Wealth is an integrated wealth management platform that delivers a total wealth solution to clients across the wealth continuum, with integrated advice and execution across both their assets and liabilities. Citi Global Wealth serves ultra-high-net-worth individuals and family offices through
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Source: Citi Global Wealth Investments