Michel Perera, chief investment officer at Canaccord Genuity Wealth Management provides key outlooks for the coming months.
The big picture
The global economy
The US consumer
Geopolitical risks
On technology
Investment involves risk. www.canaccordgenuity.com/wealth-management-uk
“The world has not ended. We have a lot of good opportunities left. There are a lot of people that are pessimistic. When you pick through all of their concerns, there are more opportunities than fears.”
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“There are only two economies that matter in the world – the US and China. The US is in a boring, but stable situation with the market expecting 1.7% growth. It’s obvious that China’s growth is slowing down, but that’s partly due to the size of its economy and it’s still adding a lot of growth to the rest of the world.”
The US CONSUMER
“The US consumer is doing well: unemployment is at historic lows, people are getting inflation-beating wage rises. The risk is companies start shedding labour.”
GEOPOLITICAL RISKS
“There have always been geopolitical concerns but the global economy has kept on growing. During the Cold War there was every risk, including nuclear war, and still the economy grew very fast. In itself, geopolitics is not a concern. However, population growth is barely above the replacement level in developed countries, and this is a drag on consumption.”
ON TECHNOLOGY
“Technology is still an attractive sector. It has a lot of subsectors – semiconductors, software, AI, cybersecurity. It plays on two levels – rich countries are constantly upgrading their standard of living and poor countries want to match it. It still has a lot of cyclical growth ahead.”
