Citi Wealth Insights

As investors drove a relief rally in financial markets post the G20 summit, this serves as a reminder that market timing could be detrimental to the long-term health of portfolios. Citi analysts believe that asset allocation across high/low risk investments remains the best strategy to cope with uncertainty.

The Citi Private Bank Global Investment Committee (GIC) has reduced our risk asset allocations, where the global equity allocation is now underweight, fixed income overweight and cash overweight.

Global equity markets have come nearly full circle from a significant correction in 4Q 2018. Despite the recent rally, Citi analysts still forecast mild gains for the rest of 2019 albeit with higher volatility.

Citi analysts expect that both the economic expansion as well as the equity bull market have further to run albeit with higher volatility.

The main drivers of poor 2018 performance are likely to moderate or reverse in 2019.

Given the increase in price volatility, investors may think that market timing during a late-stage bull market may sound like a good idea but history suggests that there is no ‘right time’ to try timing markets.