Investment Outlook: 2H2017
Debt Capital Markets
Domestic investors are showing their sentiments for their investment time horizons as we saw more stability in the near term debt markets (2 to 3 quarters out) and as we start pushing into the following year- the aversion for taking maturity risk is being duly noted.
“I don’t know what the world will look like in the long term…”
We are seeing investors flock to more liquid positions as the global equity markets started 2017 off strong reminding us of 2009, the first year of this current bull market. This worries investors because history has proven that in the last twenty years, the best first half of the year of global markets signaled the beginning of bull markets (i.e. 2003 and 2009) and the end of them (1999 and 2007).
Expect housing markets to continue feeling strong demand for short term stability, i.e. 2 to 3 quarters, though I would be cautious when looking at longer time horizons.