Sunday, 13 December 2015

Global Economic Predictions, Key Events and Our Investing Advice For 2016

As we approach the end of 2015, many publications and online sites are publishing their predictions for 2016. Out of the many articles I've read so far, I recommend that you check this article out:
If you don't have the time to read, here are the key points of this article summarized for your convenience.

Bloomberg's Economic 2016 : Here's What You Need To Know
Key Events To Watch
  1. Signing of the Trans-Pacific Partnership trade agreement could benefit 12 nations that together account for 40 percent of global output. 
  2. Summer Olympic at Brazil. 
  3. China will unveil a new 5 year plan that touches on nation building, from the economy to foreign policy, the military and the environment 
  4. referendum in the U.K.—possibly in October—on whether to remain part of the European Union 

Global Predictions
  • There will be undeclared currency wars as Europe and Japan try to cheapen their money to boost exports and employment at home—essentially stealing growth from their trading partners. ~ Adair Turner, former chairman of the U.K.’s Financial Services Authority
  • China will continue to decelerate.
  • Interest rates and the prices of oil and other commodities are likely to remain low.
  • Federal Reserve (US) attempts to nudge rates higher
  • European Central Bank & Bank of Japan look for ways to stimulate growth through lowering of interest rates and bonds buying.
  • Greek financial crisis could wind up back on if Prime Minister Alexis Tsipras can’t win approval for the spending cuts, tax hikes, labor-market reforms, and privatizations that creditors have demanded.
  • Europe’s refugee crisis is a fresh stress on the EU. The strange thing is that it may stimulate short-term economic growth, at least in Germany.
  • IMF predicts India to accelerate slightly to 7.5 percent growth.
China Down Down Down
  • World’s appetite for Chinese goods isn’t growing at the same pace anymore.
  • China has no urgent need for more of the infrastructure it’s been furiously building
  • President Xi Jinping is having a tough time guiding the economy toward domestic consumptions a new source of growth
  • IMF projects that China’s growth will slow to 6.3 percent in 2016, from 6.8 percent this year
  • A sharp slowdown in China would drag other emerging markets down.

2016 Outlook by Invest Made Easy
Investment Opportunities:
Watch for further development (KIV):
  • China
  • Emerging Markets
  • Russia
  • Brazil
  • Commodities

2016 Investing Advice from Invest Made Easy:
  • Investors should practice caution next year and reduce exposure to equities. Opportunities for gains are hard to find.
  • Cash is king. Make sure you have more liquidity.
  • Capital preservation is vital for 2016. Look for secure alternatives despite the low returns.
  • Add more Gold related equities to your portfolio via RHB-OSK Gold and General Fund
That's all for this post. Cheers and happy investing in 2016.

P.s : If you like to get started on investing into unit trust on your own, drop me an email at to inquire for more information.

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1 comment:

  1. Hi Sir,

    What category of unit trust would you advise people to invest in the Private Retirement Scheme in light of this new development?