Business Wire

Citi Global Wealth Investments Issues Mid-Year Outlook 2022: Investing in the Afterglow of a Boom

Share

Citi Global Wealth Investments today released its Mid-Year Outlook 2022 report: Investing in the afterglow of a boom. This biannual report sets out Citi’s outlook on rapid developments in the global economy, markets and geopolitics.

The first half of 2022 has been especially challenging for investors, leading to increased uncertainty and concern. The global economy has endured a series of shocks over the last few years as COVID shutdowns, unprecedented stimulus, supply chain seize-ups and Russia’s invasion of Ukraine have all created significant challenges. The most obvious result of these shocks is inflation, even as the economy slows and reduced stimulus hits consumer spending. Citi believes the worst of U.S. consumer price inflation has already passed, with a decline to around 3.5% likely in 2023.

“Across developed economies, consumer prices have been rising faster than they have in decades. In response, policymakers are withdrawing the fiscal and monetary boost they provided when COVID struck,” said David Bailin, Chief Investment Officer and Global Head of Investments for Citi Global Wealth. “The U.S. Federal Reserve is leading the way, signaling some of the biggest annual interest rate rises in its history. We think that the Fed’s actions will determine if there is going to be a recession or sustained growth. The economy can stand higher rates, but not an abrupt withdrawal of liquidity.”

"Inaction on the part of investors is like market timing. It rarely works. We believe that a fully invested portfolio has the potential to improve outcomes across difficult macro environments, like the one facing investors now," continued Bailin.

Beat the “cash thief’

For holders of cash, the repercussions of inflation are painful. Negative real interest rates are akin to a “cash thief,” who silently steals purchasing power year after year. Therefore, Citi Global Wealth warns that investors sitting on excess cash will likely be left poorer over time.

Citi Global Wealth thinks bonds are back

The recent rise in interest rates is good news for investors with too much cash. U.S. Treasury yields have doubled across all maturities in the past year. With this, fixed income has become a relevant asset class for many types of investor objectives.

Citi Global Wealth believes that bonds at today’s interest rate levels have the potential to add both income and diversification to portfolios. Municipal bonds, U.S. investment grade bonds, U.S. preferred securities and select emerging market U.S. dollar denominated bonds are all attractive at these levels.

Unstoppable Trends

Citi Global Wealth’s “Unstoppable Trends” – powerful multi-year forces that produce lasting change in multiple spheres – remain a core pillar of 2022’s Mid-Year Outlook. These trends include digitalization and the rise of Asia, which addresses the ongoing shift in economic power from West to East.

The digital revolution has far to go

While many growth-oriented investments have struggled in 2022, Citi also sees a compelling long-term case for the digital disruptors that are reshaping the world. Just as businesses need to embrace this disruptive process if they are to survive and thrive, investors should seek it in their portfolios.

Amid the weakness in digital disruptors’ equities in 2022, Citi sees potential to add portfolio holdings through selective exposure to cyber security, including cloud, identity and data security, as well as to leaders in the payments sub-sector. Payments remain a key focus within fintech, where profitability and higher dividend yields are more typical. For suitable investors, Citi favors digitalization-related strategies from venture capital, growth equity and hedge fund managers.

The rise of Asia: G2 polarization accelerated

Citi seeks exposure to the ongoing rise of Asia, including regional players that stand to benefit from U.S.-China rivalry. The U.S.-China differences over Russia are merely the latest development in a momentous struggle between the world’s two economic superpowers - “G2 polarization” - and it is playing out in many different spheres, including in trade, financial markets, technology, military capabilities and diplomatic influence. While highly distracted by domestic COVID challenges, China wants to become the dominant power in its home region and beyond.

“We’ve adapted for a world of scarcity, allocating capital to produce more of the commodities of greatest need. We’ve made important adjustments in our tactical asset allocation in 2022 to position for the risks and potential opportunities that we see ahead, believing the global economy can weather the storm,” said Steven Wieting, Chief Investment Strategist and Chief Economist at Citi Global Wealth Investments. “Mid-way through 2022, many investors are frozen in a state of indecision. Ultimately, being fully invested in a globally diversified allocation remains the best course of action, as keeping portfolios static, positioned for conditions in previous years remains a top risk for investors. Our view is that this is a time for taking positive action, while avoiding certain costly mistakes.”

Citi Global Wealth’s full Mid-Year Outlook 2022 report, a summary version, short videos and other materials can be accessed here.

About Citi Global Wealth:

Citi Global Wealth is an integrated wealth management platform that delivers a total wealth solution to clients across the wealth continuum, with integrated advice and execution across both their assets and liabilities. Citi Global Wealth serves ultra-high-net-worth individuals and family offices through Citi Private Bank, operates in the affluent and high-net worth segments through Citigold® and Citigold Private Client and captures wealth management in the workplace through Global Wealth at Work. Citi Global Wealth provides clients with a leading investment strategies platform, which delivers traditional and alternative investments, managed account strategies, best-in-class research and investment guidance for all clients.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Media:
North America: Blair Rosenberg, blair.rosenberg@citi.com
EMEA: Belinda Marks, belinda.marks@citi.com
APAC: James Griffiths, james.a.griffiths@citi.com
LATAM: Denise Rockenbach, denise.rockenbach@citi.com

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Landmark Study Reveals New Technology from DeBogy Molecular Significantly Reduces the Bacteria and Deadly Infection that Can Occur Following a Surgical Implant27.6.2022 15:15:00 CEST | Press release

DeBogy Molecular, Inc, a biotech startup that specializes in antimicrobial surface modification, today announced the findings of a landmark in vivo research study that affirms the effectiveness and safety of their new technology to kill the dangerous bacteria that proliferates on the surface of a medical implant following surgery. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220626005067/en/ Wayne Gattinella CEO, DeBogy Molecular, Inc (Photo: Business Wire) Infection resulting from bacterial biofilm that forms on the surface of a medical implant represents one of the most serious complications that can follow orthopedic surgery or the implantation of a medical device. Implant related infections account for over half of the 2 million yearly healthcare-associated infections in the U.S., at a cost of over $27 billion dollars annually. A preclinical research study was conducted by Vivexia, an independent Clinical Research Orga

NielsenIQ Accelerates Expansion of Global Retail Strategy with Addition of Retail Lab Leader, Dawn E. Norvell27.6.2022 15:00:00 CEST | Press release

NielsenIQ has strengthened its leading global retail practice with the addition of Dawn E. Norvell as Global Head of the newly formed NielsenIQ Retail Lab. In her new role, Norvell will lead a progressive team created to better identify retail client needs, design solutions, and enable retailers to use NielsenIQ's full suite of products to help drive their business. Norvell will build a sales and commercial management strategy designed to expand NielsenIQ's retail analytics focus and enable growth within the business unit. “The NielsenIQ Retail Lab is an important part of our global retail strategy & company success, and Dawn’s industry-leading knowledge and background in the global marketplace gives a rare viewpoint of the current retail climate,” said David Johnson, Global President of Retail at NielsenIQ. “Her extensive first-hand experience will enhance our broad range of go-to-market client offerings and add significant depth to our retail team. We are thrilled that NielsenIQ cont

Work for Humankind: World of Possibilities Opens Up for Remote Island with Lenovo Technology27.6.2022 15:00:00 CEST | Press release

As part of its landmark partnership with Island Conservation and the Robinson Crusoe Island community, Lenovo reveals the next stage of its Work for Humankind project: critical pieces of smarter technology installed throughout the island will become permanent fixtures to leave a lasting legacy and stronger connectivity on an island that’s home to one of the world’s most diverse ecosystems. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220627005008/en/ Work for Humankind volunteers working remotely from Lenovo’s technology workspace on Robinson Crusoe Island, Chile (Photo: Business Wire) Bridging the digital divide, a previously isolated island of 900 people will now remain connected to the world through Lenovo technology to open new possibilities for tourism, trade, employment, and education, increasing its environmental and economic resilience. For the first time ever, this remote island community has self-determined, equi

The Minister of Trade and Industry Launches the Norwegian Government's Battery Strategy at FREYR Battery in Mo i Rana27.6.2022 13:39:00 CEST | Press release

FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, welcomes the Minister of Trade and Industry to launch the Norwegian Government's National Battery Strategy at FREYR Battery's giga giga factory location in Mo i Rana, Northern Norway. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220627005371/en/ "Sentraltomta" inside Mo industrial Park (Photo: Business Wire) This was announced at the Norwegian government’s webpages Monday morning 27th June Norwegian time: https://www.regjeringen.no/no/aktuelt/naringsministeren-lanserer-regjeringens-batteristrategi/id2920877/ FREYR Battery CEO, Tom Einar Jensen, says: “We are very proud that the Norwegian Government has chosen FREYR Battery’s giga factory location in Mo i Rana, as the historic place to launch Norway's National Battery Strategy. We warmly welcome the Minister of Trade and Industry, and experience this as a strong con

Time Manufacturing Company Acquires France Elévateur27.6.2022 12:00:00 CEST | Press release

H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with over $49 billion of equity capital under management, is pleased to announce that its portfolio company, Time Manufacturing Holdings, LLC (“Time Manufacturing” or the “Company”), a leading, global provider of vehicle-mounted aerial lifts, has acquired France Elévateur (“FE Group”). The pairing of the two companies, who share a mutual dedication to quality and safety, strengthens the combined platform’s global manufacturing capabilities while enhancing value to customers through a broader portfolio of complementary products and services. Founded in 1984 and headquartered in Flavigny, France, France Elévateur is a leading manufacturer of vehicle-mounted aerial platforms for customers in various trades including public lighting, electric utility, roofing, telecommunications, rail networks, and other fields requiring access solutions. Through its two manufacturing sites in France and Spain and its footprint of 15 s

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom