Important Links

Investment areas to consider in 2018

22 November 2017EconomicsEmerging MarketsOutlook

Investment sectors to consider in 2018

  • 36% of guests at our Autumn Outlook event saw value in tech stocks
  • Citi however favours technology sectors plus financial and materials sector too
  • Unregulated Cryptocurrencies were also discussed at the event

On 18 October, Citi hosted their Autumn Outlook event, inviting guests to hear from three leading voices in markets – Jeffrey Sacks, Director Investment Strategist for Citi EMEA, Matt Williams, Director and Product Strategist for BlackRock, and Luca Paolini, Chief Strategist for Pictet.

After discussing the investment opportunities in global markets, Citi's panel drilled down further, exploring the potential opportunities in other areas. When asked which assets they felt could offer the best return over the next five years, 36% of the evening's guests voted for tech stocks, followed closely by healthcare stocks (29%) and then Emerging Market (EM) equities (18%).

Citi favours emerging markets at this time

Globally, Citi's preferred sector is financials at this time, due to good growth prospects and affordable entry points in spite of price increases. But of the top three answers in the poll, Sacks suggested that Citi "prefers emerging market equities by some distance."

"Emerging countries are not dependent on another upturn in the global commodity cycle," said Sacks. "This time, it's domestic demand driven."

Technology and healthcare continues to show promise

Within the tech landscape, there has been a rise in demand for robotics – particularly in countries with worker shortages. In August this year, Japan had 1.52 jobs for every applicant - the highest since 19741. "There are very clearly winners and losers," said Williams. "In IT, you have companies like ASML, who benefit from extremely strong research and development which should offset their historic valuation. But if interest rates go up, there could be a problem for the more leveraged names in the sector."

According to Citi analysts, the healthcare sector seems to be showing top-line growth, but recent changes within this sector may have made it increasingly difficult for companies to stay profitable. For instance, many US investors have chosen to steer away from healthcare stocks after drug pricing was questioned by both presidential candidates of the 2016 election2.

Discussing cryptocurrency

In light of emerging investment trends, cryptocurrency was also covered in the event's discussion. Paolini explored the appeal of a small investment in this sector – considering the relatively low costs and the potential for high return. "We're living in a world where central banks are becoming less independent," he said. "And many are worried that in the next recession they could just start printing money. It's difficult to put a valuation on cryptocurrencies, but some could make a successful story, not a fad."

However, this market is currently unregulated, and as such, Citi does not advise investing in cryptocurrencies at this time. As the event's host, Citi's Products and Advisory Director Vidur Varma said, it may be one to watch over the next 10 years, as the market gets more established.

Whichever sector you choose to invest in, one takeaway from our Outlook event is the importance of keeping an optimised and diverse portfolio. If you'd like to discuss the event's topics in more detail, your Relationship Manager is always on hand for further advice.



Our recent research

Keeping an Eye on Volatility

In the months ahead, occasional bouts of uncertainty and market volatility can be expected, with a potential re-emergence of COVID-19 cases, US-China relations and US elections among the top risks.

Find out more

EquitiesUSAsia PacEmerging Markets

Europe: Economic Recovery Underway, but Far Below Normal

Europe and UK face challenging unlocking phases. Citi analysts expect some resurgences from COVID-19, but no new widespread and prolonged lockdowns.

Find out more


A Pandemic Pause Amidst the Recovery?

As individual States in the US emerge from the first-order effect of lockdowns, the result has been a uniform, major jump in economic activity, but an acceleration in the spread of the virus across half the country. Citi analysts expect financial market volatility to remain high. However, improving financial conditions, supportive macroeconomic policies, improving sentiment by consumers and business suggest that the new economic recovery could endure.

Find out more

Covid-19Asset AllocationEquities

Take the first steps to your wealth management planning with Citi

Speak to a Relationship Manager
0207 500 1992

Already with Citi? Contact your relationship manager or view product availability on Citi Online

Why choose Citi

A relationship - not just a bank account

A dedicated Relationship Manager giving you access to our internal team of product experts and all our benefits

Access to exclusive Citi products

A range of current and investment products available both on shore and offshore, in the currency of your choice
Multi-currency accounts
Investment products

Global services for a global lifestyle

Our team is here to support you getting started in UK or with International travel and relocation
Moving to and from the UK
Travelling overseas

Offshore investments

We offer a diverse range of banking and investment services, including for those who want access to offshore investments

Find out more

Just moved to the UK?

We can save you time money and hassle. If you are a foreign national in the UK, Citi's International Banking Service can help you manage your money, home and away.

Find out more

Investment products are not insured by any governmental agencies, are not bank deposits, and are neither obligations of, nor guaranteed by, Citigroup, or any of its affiliates, unless otherwise stated. Investment products are subject to investment risks, including possible loss of some or all of the principal amount invested. Past performance is not indicative of future results, investments can go down as well as up.

“Citi analysts” refers to investment professionals within Citi Research (“CR”), Citi Global Markets Inc. (“CGMI”) and voting members of the Citi Global Investment Committee. Citibank N.A. and its affiliates / subsidiaries provide no independent research or analysis in the substance or preparation of this document. The information on this page has been obtained from reports issued by CGMI. Such information is based on sources CGMI believes to be reliable. CGMI, however, does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute CGMI’s judgment as of the date of this page and are subject to change without notice. This page is for general information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or currency. No part of this page may be reproduced in any manner without the written consent of Citibank N.A. Information on this page has been prepared without taking account of the objectives, financial situation, or needs of any particular investor. Any person considering an investment should consider the appropriateness of the investment having regard to their objectives, financial situation, or needs, and should seek independent advice on the suitability or otherwise of a particular investment. Citi Research (CR) is a division of Citigroup Global Markets Inc. (the "Firm"), which does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this information. Investors should consider this information as only a single factor in making their investment decision.

Opinions expressed herein may differ from the opinions expressed by other businesses or affiliates of Citigroup, Inc., and are not intended to be a forecast of future events, a guarantee of future results or investment advice, and are subject to change based on market and other conditions.