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
- Signing of the Trans-Pacific Partnership trade agreement could benefit 12 nations that together account for 40 percent of global output.
- Summer Olympic at Brazil.
- China will unveil a new 5 year plan that touches on nation building, from the economy to foreign policy, the military and the environment
- A 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.
- 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:
Opportunities:
- India via Manulife India Equity Fund
Watch for further development (KIV):
- Europe via TA European Equity Fund
- Japan via Affin Hwang Japan Growth Fund
Caution/Avoid:
- 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.
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