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What are the opportunities and challenges for the year ahead? - Simon Godfrey

Simon Godfrey of EFG Bank

Mar 20, 2019

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1. What opportunities and challenges do you see for the year ahead?

Video transcript

1. What opportunities and challenges do you see for the year ahead?

If we're looking at the challenges, there has obviously been a long, protracted bull market in many asset classes. We've had very benign economic conditions for many years, geopolitical risk has not really been a factor. So, when you look at the challenges going into this year, it does seem that some of those factors are starting to subside, and what you're seeing is risk has started to rear its head again. We saw this in the last half of last year, and we believe that that is a shift upwards in the risk profile of markets. Therefore, clients need to understand this. They also need to manage their expectations with regards to this. I believe that creates many opportunities. We've seen a lot of opportunities being created in the markets in 2018. It wasn't a good year for investors. That's created value in certain asset classes. It's also creating value in some long-term secular trends, but at the same time we don't think it's the time to be a hero. So, it's not a time to be able to be picking up nickels in front of steamrollers. Let's be cautious, but let's be optimistic.