The beginning of the year 2016 has introduced a very high volatility in the markets, with China's economy tanking and sending the rest of the world into a global sell off.
According to Nigel Green, CEO OF Devere Group, a financial advisory firm based in the UK, stated that, "Volatility is likely to rip through financial markets in the first half of 2016. Today's turbulence is only the beginning," he 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."
But even so, it is already difficult to find an equity bull. It's interesting to note that despite the high risk that is involved in world economy, many are still loaning in order to fund a real estate purchase. As for the Bonds, it is also heading towards the bear market. Christopher Wyke of Schroders in London said that, "We are entering a period of a bond bear market that I think will last the next 25 years."
The Colliers Global Investor Outlook of 2016, released a report on Monday stating that investors sentiment are gravitated towards the real estate and the outlook on this has remained positive. Looking back in 2015, the first 9 months brought in a total of $625-Billion value in the direct property investment around the world. The represents an 11% increase from the result of 2014 and this year, real Capital Analytics, are predicting that it could be even more!
John B. Friedrichsen, CFO of Colliers International said that, "Our report suggests that...long term secure investment in core markets will be the norm. Large volumes of capital already raised will increasingly seek out opportunities in tier-two cities and in recovering markets."
