Deutsche’s investment themes for 2012
We just finished our three-day Reuters 2012 Global Investment Outlook summit in London, New York and Hong Kong, where prominent money managers have discussed their outlook for next year. (For more click here)
Deutsche Bank Private Wealth Management (whose official was also a guest at the summit) is telling its clients the following 10 investment themes for next year.
1. Safe may not be safe Don’t react to uncertainty by automatically taking refuge in traditional safe havens such as cash, sovereign bonds, real estate or precious metals as they may prove less safe than they appear.
2. Walk before you run Build up holdings gradually, first focusing on “equity lite” type holdings
3. Ready, steady… go? When we get some clarity on euro zone resolution, not only equities and bond markets will start to have a different momentum.
4. Be nimble, but with a safety net Consider resorting to regular, dynamic portfolio rebalancing to adjust to economicand market developments.
5. Reason should dominate emotion Avoid an emotion-driven response that is likely to result in wrong investment decisions, andwrong timing, and make sure that reason always dominates the decision-making process.
6. Big will grow bigger Large multinational corporations, especially in the U.S. but elsewhere too, should be able to take better advantage of stillstrong global growth,
7. Capital over labour Medium-sized companies will find it more difficult to copewith a lower growth environment
8. Asian growth generates performance at last The scene may be set for a recoveryin Asian equities and some possible decoupling later in 2012
9. Phoenix companies in Europe Later in 2012, the European market is likely to offer somestrong opportunities
10. Volatility can be your short-term friend Volatility and market dislocation in the wake of expected policy actions are likely to cause substantial,very specific, short-term trading opportunities.