The big question on investors’ minds is whether equity markets will continue trending upwards in 2018. High valuations as such are not much of guide to answer that question, believes Valentijn van Nieuwenhuijzen, CIO of NN Investment Partners. Instead, investors should focus on trends.
Financial markets have lacked direction in recent months, with the main equity indices all very close to where they were at the start of the year. Macroeconomic data are not strong enough to reinvigorate the bull market, yet not sufficiently weak to stoke fears of recession.
It has been the question probably most frequently asked by investors over the past few years: should I increase my allocation to emerging markets now? Each time, the eventual answer has been negative as short-lived rallies have failed to sustain themselves. Will this time be any different?