«Barclays»: developed markets will lead the first quarter 2016 growth opportunities

2912 2015
Based on the results of the report «Compass» new

Developed market equities offer promising prospects for growth, but the growth of emerging market bonds still weak

The need to focus on investment portfolios away from equities resident bond markets higher than their real value

«Barclays» Bank yesterday issued its report for the first quarter of 2016 about wealth and investment management, entitled «Compass», which aims to provide investment recommendations to investors around the world, including the Middle East and North Africa.

The report, which focuses on the major asset classes in the world, for the allocation of a strong share of global equities compared with fixed-income investment portfolio. In stock portfolio ratio, developed markets stocks report preferably with a particular focus on Europe, which are companies with significant opportunities to rebound again, warning at the same time that the border closure in Europe might affect the profits of some companies.

While the report allocated to reduce the proportion of fixed-income investment portfolio, it recommends the allocation of this reduced rate of government bonds issued by developed country compared to bonds of higher-yielding bonds and bonds of emerging markets investment category.

The monitoring report many of the risks facing fixed income instruments, particularly in the US market, which is expected to see a rise in the deficit associated with the energy sector levels, as a result of lower oil prices.

Tactical asset

For emerging markets stocks, continued to report «Compass» tactical allocation of the weight low for this category of assets, so in the short term, but maintained a positive vision of a long-term commitment to these markets, thanks to the demographic characteristics of these countries. It is worth mentioning that the «Commission customize tactical assets» in «Barclays», which includes portfolio managers and senior strategists in the field of investment, still monitor opportunities selectively in emerging markets, particularly in the «Morgan Stanley Capital International Chinese shares index.»

As for the investment in commodities, the report recommends a reduced survival rate for this category of assets, and in this context identified Traqbia approach to the issue of lifting US interest rates continue to impact on commodity prices.
The report also pointed to the approach of basic commodities, such as oil and copper, to reach their lowest levels at a time when gold is still vulnerable to the impact of the imminent rise in interest rates.
Continued worries
Commenting on the findings and recommendations of the report, the head of investments and global solutions for the Middle East and North Africa, said in a unit of wealth and investment management at «Barclays», Vic Owner: «It seems the new year is generally appropriate to make concrete changes, but we expect the economic climate as it is remains unchanged during the first quarter of 2016, which supports our view that investment portfolios need to be more focused on the stock and bond markets is far from being assessed actually higher than their real value.
Also we expect that investors' fears continue over the next year about a number of issues, which includes the effects of the slowdown of the Chinese economy, and corporate debt in emerging markets as a result of the US dollar's strength, as well as the path of US interest rate in the event of inflation close to the target set by the Federal Reserve. »
He Owner: «We believe that corporate profits constitute the most obvious opportunity to achieve further recovery in Europe, is also the foundation stone for the consolidation of the weight of the share of the stock markets of this region. But we also recognize the importance of follow-up sales of US companies in order to identify specific investment opportunities, especially to corporate profits in the coming quarters may be affected as a result of commodity prices and curb the growth of the US dollar value. »
© Al Anba 2015