The research showed that 49 per cent of high-net-worth investors are positive about the economy this year, with real estate, health care and information technology predicted to be the top three sectors in 2021.
Meanwhile, the state of the global economy ranked first in regards to the biggest concerns for 2021, followed by COVID-19 and trade wars.
Citi Australia’s head of banking and wealth distribution, Gofran Chowdhury, said Citi “largely agree” with the surveyed investors’ predictions.
“We are also positive on healthcare, as with our rising ageing population we expect the sector to benefit in the future,” Mr Chowdhury said.
“While we are no doubt moving towards a digital world, the recent rise in yields is pushing down higher valued ‘growth’ equity like information technology, causing us to prefer shares that are expected to be profitable today, rather than in the future.”
Citi’s research also found that diversification continues to be problematic, with over half of high-net-investors surveyed agreeing that diversifying their portfolio is a top priority.
“Diversification is a problem that permeates Australian investing, with a culture of only looking at properties, shares and cash still remaining king,” Mr Chowdhury said.
“This is particularly problematic in today’s volatile, low-rate environment, as investors are missing out on potential upside associated with further diversification across different geographies and asset classes.”
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
