Citigroup experts urge clients to avoid keeping cash in portfolios
Citigroup analysts urged clients to invest cash in assets. The share of cash in some of the portfolios reached 35%, according to Forbes.
David Beilin, the bank’s investment director, commented on the experts’ forecast for the middle of this year. Analysts advised clients to restructure their portfolios. The main idea of the forecast is that a significant economic collapse will be followed by an outbreak in business activity in the world, as well as a recovery in many industries. Beilin also noted that analysts have done a lot of research and are confident in their summary.
Citigroup researchers recalled that there are many situations in history when the greatest profitability of investments was shown after crises. For example, this trend was observed in 2001 after the dotcom bubble and in 2008 after the mortgage crisis. The return on investment at those times increased by 800 and 710 points, respectively, in comparison with the previous periods. Bank analysts are confident that a similar situation will occur this time during the second half of this and the entire next year.
The experts also revised the forecast for the yield of securities of small and medium-sized enterprises in the world markets from 9.2% to 11.6%. Citigroup pointed to healthcare and digital technology as the top areas for “unstoppable” investment growth.