“Ultimately, being fully invested in a globally diversified allocation remains the best course of action as keeping portfolios static, positioned for conditions in previous years remains a top risk for investors. Our view is that this is a time for taking positive action, while avoiding certain costly mistakes.”
The challenges presented in the first half of 2022 has created uncertainty and concern for the global economy but a fully invested portfolio has the potential to improve outcomes across difficult macro environments, say the analysts from Citi Global Wealth Investments at the bank’s mid-year outlook briefing on June 28. They believe the worst of US consumer price inflation has already passed, while China remains ahead of the curve in global economic recovery.
Steven Wieting, chief investment strategist and chief economist of Citi Global Wealth Investments, says given the market volatility of the past few months, many investors are now “frozen in a state of indecision”.
