KKR, a U.S. private equity firm, has recently issued a note to the less experienced investors, warning that the global market's volatility can destroy them.
KKR's head of global macro and asset allocation, Henry McVey, issued this statement. According to him, 2016 can bring a lot of opportunities in the investment market. However, he believes there will be much to worry as well.
This worry was a product of the recent China economic damage that drew concerns internationally, according to CNBC. The slowing down rate of the world's second largest economy, accompanied by the oil price decrease, affected a lot of other markets.
There was, however, a noted stabilization in the Chinese Yuan, while the U.S. stocks closed higher last Tuesday. This has led to a slight recovery from the downfall at the beginning of 2016. This, therefore, displays instability in the investment sector.
McVey likened the current market condition to a sea, wherein a strong undertow or waves may pull a less experienced swimmer. He said that further decline in the global market may not happen, but there is greater probability compared to that of the past.
He suggested that the current macro investing environment must be dominated by the highly experienced investors. To him, this would also lessen the decline in the market's rate.
"The current macro backdrop does not mean that there are no good investment opportunities. Rather, one just needs to think through how to embrace current market volatility to one's advantage," said McVey. This statement is posted in Yahoo! Finance News.
McVey also shared a few key investment opportunities in 2016. He said that private financing opportunities for real estate, equipment, and infrastructure have been risk-adjusted. Therefore, this sector could be a good bet.
There is also a good deal in the credit market, he believes. Moreover, he motioned that certain segments of the market will be affected by the global consumers. Therefore, finding the opportunities in healthcare and real estate, among many others, can help the economy.
