The Senior Strategist: Recommendations and themes for 2016
Ib Fredslund Madsen, Jyske Bank's Senior Strategist,talks about the Bank's expectations of the financial year 2016.
What will the most important themes be, and where should you invest your money?
Some ofJyske Bank's investment conclusions for 2016 are:
- Choose equities in countries pursuing an easy monetary policy - for instance, Europe and Japan.
- Corporate bonds:Choose European rather than US bonds.
- The dollar will peak in 2016.
- Emerging-market (EM)bonds: Be very selective. Go for countries willing to implements reforms, suchas India, Indonesia. and Mexico.
- EM equities may be a 'joker in the pack': Investor sentiment in respect of EM equities has for quite some time been extremely negative - maybe too negative. An upturn fuelled by sentiment may be in the offing.
- Expectations of equity returns (ex dividend in local currencies): USA = 0%, Europe = 7%, Japan = 8%, Emerging Markets = 8%, Denmark = 6%.