While other parts of the globe struggle with complex political and economic uncertainties, investors and the business community should look to Asia to power ahead, according to David Bailin, chief investment officer for Citi Private Bank.
Speaking in Singapore, New York-based Bailin claims that Asia will gradually take the reigns as the premier investment destination as a confluence of long-term forces unfolds.
Among key pull factors Citi's CIO highlighted include Asia's demographic dividend, the rapid growth and integration of major infrastructure projects and the quick adoption of cutting-edge technology across all sectors, especially in financial services and healthcare.
Citi backs the long-term trend as Asia continues to urbanize and the burgeoning middle class across the region unshackles itself from being just a supplier of manufactured goods.
The transformation is turning Asia into the biggest and most significant driver of private household consumption and investment growth, and the long-term direction of travel shows no signs of abating.
The bank points out that these long-term influences can persist through turbulent economic cycles and having portfolio exposure to these historic trends has the potential to deliver resilient growth.
But while the hyperbole around Asia's attraction for investors is loud, the region still lags in drawing interest from global investors.
The Citi man highlights what some may consider a paradoxical situation: that while Asia is the only region of the world to consistently gain a share of the global economy, it has a miniscule slice of global equity and fixed income benchmarks.
Looking further afield Bailin expects economies across developed markets to decelerate but draws the line on any talk of recession. "Slower growth is not a recession," says Bailin, adding, "The outlook is actually brighter than it looks."
Citi private bank expects global growth to prevail through 2019 but is also aware that this is a late-cycle environment.
However, Citi expects to see the US economy facing increased headwinds now that the tax cut advantage has worked through.
The bank is also cautious on the ongoing US-China trade spat and is advising its clients to safeguard their assets by encouraging the prudent use of leverage and globalizing portfolio allocations to diversify risks.
Bailin points out his own bank's area of main activity centres around working closely with the bank's wealthiest clients on building diversified portfolios as a buttress against weakening economic activity.
