While we are approaching the end of 2016, traders already look into the next year opportunities. UBS 2017 top ten investments will provide you with substantial insights. What to pay attention to in the 2017 trading year?
29 November, AtoZForex – UBS Wealth Management recommends to closely watch energy, healthcare, and education sectors in 2017. The analysts from UBS also have shared their key takeaways from the current year.
UBS 2017 top ten investments
As we are approaching the year of the Rooster, it is high time to look back and remember the most important lessons 2016 taught us. UBS Wealth Management believes that the following takeaways from 2016 need to be memorized:
– No need for panic, even in the uncertain times
– Don’t confuse a base case with a done deal
– Don’t underestimate central banks, even some negative-yielding assets showed positive returns
While keeping these tips in mind, Swiss banking giant proposed to take look at the UBS 2017 top ten investments.
US equities determined to surge
Even though many did not like the news about Donald Trump becoming the next President of the US, investors across the US certainly did. Additionally, UBS has added:
“‘US earnings should grow 8% in 2017, supported by stabilizing oil prices, accommodative monetary policy and potential fiscal stimulus from the Trump administration.”
Moreover, US equity benchmarks have been reaching new records recently.
Emerging markets stocks on gradual rise
The gradual advancement in emerging markets in 2016 will continue, according to UBS analysts.
Attractive emerging market Forex basket
Emerging markets enjoy the steady growth not only in the equity market but also in Forex sector. Furthermore, UBS analysts believe that low developed markets rates support make high-yielding emerging market Forex attractive against growth-sensitive developed market currencies.
Asia Pacific real estate investment trusts
While a number of investors shift from safe haven territory, alternatives such as Apac real estate investment trusts are looking more attractive.
Dividend and buybacks
In the yield-hungry environment, investors should keep looking for recurring revenue in dividends and buybacks during the next year, according to the UBS Wealth Management.
US senior loans
Senior loans are very alike high yield bonds in their rating. This could put them in good steady for 2017. UBS analysts believe that the senior loan yields offer a 4% pickup over short-maturity investment-grade corporate bonds. This is appealing even in case default rates advance to long-term averages.
US Treasury Inflation-Protected Securities
The seventh point on the list of UBS 2017 top ten investments talks about inflation. Specifically, the analysts expect the inflation to ease into a steady increase in the US in the wake of Trump’s victory.
Platinum and palladium
According to UBS analysts, commodities are in the uptrend. UBS stated that they are placing their bets for palladium and platinum.
As traditional asset classes are commencing to provide returns, alternative investments will continue to unlock higher returns on investments, according to the analysts at UBS.
Sell high-grade bonds
Moreover, the experts at UBS believe that investors need to sell high-grade bonds as an alternative way of generating the asset class’ insurance features.
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