The economy and the markets will suffer little changes during the next twelve months. Although it is important to pay attention to investment trends and take advantage of the new real estate cycle.
After a year of improvement in the global economy, in 2018 the time for sustainable recovery and profitability could have come.
The latest report from BNP Paribas Wealth Management tries to leave the master lines in the new economic stage. A period marked by solid growth, the control of inflation, the loss of monetary support and the emergence of new social problems.
Against this background, the consultant redesigns investment strategies for Europe, the United States and Asia. Giving ten major guidelines, so that the investor can take advantage of the best opportunities in the market.
A framework where themes adapted to the current situation coexist with future trends. And where real estate investment can help get the most out of our money.
Strategies adapted to present and future markets
At a time of few economic changes, BNP Wealth Management describes the ten major investment formulas for this year.
In its ‘Investment Trends 2018’ report, it is invited to take advantage of a mature economic cycle. A positive moment for risk assets that should be exploited. Pointing out the ten main investment strategies for all types of portfolios: five adapted to the current market and five designed to take advantage of the mega trends.
Five investment tips for today
1.- Look for profitable alternatives to fixed income strategies
2.- Take advantage of mergers and acquisitions in a moment of business growth
3.- Find much more flexible investment solutions
4.- Take advantage of the economic cycle to bet on ‘value’ funds
5.- Protect the portfolio against the rise in inflation, betting on real assets
Five major trends for the future
6.- Betting on the demand and consumption habits of millennials
7.- Pay attention to the new practices in mobility and energy efficiency
8.- Be attentive to the urban needs and infrastructures
9.- Adapt the strategy to the latest life trends (health, sustainability)
10.- Invest in companies that take advantage of the recovery of consumption
El sector inmobiliario entre las tendencias de inversión
Real estate investment is one of the safest bets facing 2018. Especially before a panorama of growth in economic inflation.
As BNP Paribas Wealth Management recalls, the real estate sector allows investors to safeguard their assets. Profiting both for the acquisition of real estate and for investment in listed real estate.
Its experts recommend investing in tangible assets, such as a building, a place or a home. Blocking a possible loss of purchasing power caused by the increase in prices.
‘With the economic cycle in a mature stage, it is foreseeable that inflation will rise in a more accelerated way. This would cause losses in the value that the investors in real estate assets could avoid’, defend from BNP Paribas.
Among those who opt for direct investments, the managers of the manager advise the financing at a fixed rate. Protecting against possible rises in the types. While those who buy to rent should do so according to the rise in prices, to be able to take advantage directly with the collection of rent.
Sectors of interest to invest in real estate
Of the different real estate sub-sectors, BNP Paribas experts highlight profitability in commercial and residential assets. Two types of real estate that collect profits, both for the economic recovery and for the existing demand. Especially in the cities of Madrid and Barcelona.
In addition to the direct acquisition of real estate, it is also recommended to invest in listed real estate companies. Highlighting those companies dedicated to construction that can take advantage of the recovery of investment in all types of infrastructure. As well as those focused on the urban renewal of the capitals.
‘Economic growth is linked to the development of infrastructures, both between emerging nuclei that must grow and in large cities that need to renew themselves to be competitive’, highlight BNP Paribas.
That is why companies dedicated to mobility, construction and infrastructure, together with those focused on recycling and sustainability, have a long journey. Especially in the main cities.
A development that will benefit, of course, all those who invest in real estate. One of the present and future investment trends.
