According to Forbes, 2016 will likely have equities flat to negative. There are many factors surrounding the said phenomenon, and some of these factors would likely include economic status of big playing countries, oil status, and rate hikes. That is why the report highlighted that most global fund managers are preparing for a drought this periods of 2016.
According to Nigel Green, CEO of deVere Group, a financial advisory firm based in the U.K. via Forbes, "Volatility is likely to rip through financial markets in the first half of 2016. Today's turbulence is only the beginning. He also added that, "there's a cocktail of uncertainty, with the main ingredients including China's economic woes, higher interest rates in the U.S., historically low oil prices, Britain's referendum on exiting the European Union, and increasing tensions in the Middle East."
Though there is an impending drought in the investment market. There are still some avenues that most investor could capitalize on. According to Colliers Global Investment Outlook International, it is to be expected that this year will belong to the real estate industry. Based on the said forecast, investor will likely find its solace in real estate which is projected to remain positive this year. Real Capital Analytic emphasized via Forbes that;
"Primary target markets will continue to draw the most interest, with moderating risk appetite, stable economic conditions, and low interest rates driving increased investment in secondary markets. Transactional activity in the first 9 months of 2015 brought in $625 billion of direct property investment worldwide, representing an 11% increase over the same period of 2014."
Based on Forbes report, 52 percent of the said 600 investors will likely increase their allocations towards real estate, while 11 percent of the said population will decrease. It also continued that demand growth will continue and among the main targets in for "direct cross-border real estate acquisitions" will include London, Paris, New York, San Francisco, Tokyo and Sydney," said Forbes.
