High hopes for US, UK and EM equities in 2019?

Businessman in his office at night working late.

Advisers expect US equities, emerging market equities and UK equities to be the top three performing assets in 2019, according to research by Aegon.

The group's survey, which canvassed 205 financial advisers, captured their views on the asset classes they expect to perform best and worst for clients throughout the next 12 months.

According to the research, one in five (22%) advisers expected the top-performing assets to be US equities, followed by emerging market equities (15%) and then UK equities (14%).

The worst performing assets over the next year were expected to be cash (24%), with hopes for UK gilts only slightly better (19%). Corporate bonds were predicted to be the third worst-performing asset, with nearly one in 10 (8%) respondents selecting it to be the poorest performing asset.

According to Aegon, the mixed predictions reflected current market volatility and political instability, with one in five (22%) advisers unsure of the asset class they would predict to generate the best returns over the next 12 months.

'Fickle markets'

Aegon investment director Nick Dixon argued advisers were right to question whether the longest bull market in history could be coming to an end in the current"highly voltaile investment landscape".

"When it comes to investment decisions, advisers and investors are having to face a number of concerns head-on," he added."This includes the impact of geopolitical stress in emerging markets, equity valuations and the potential impact of Brexit on UK equities.

"Our research shows, however, that advisers remain level-headed in the face of a very fickle market. Advisers are right to remain focused on long-term returns and diversification, and to avoid reacting to fast-moving market conditions."

 

This article was written by Sophie King from Professional Adviser and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.