General Prospects for Investing in 2018
On 3rd January, the 13th International Investment Forum on "Where to invest in 2018" took place in Orea Hotel Pyramida in Prague. The conference was attended by leading economists and investment experts from the Czech Republic and abroad.
The main forecasts for the Czech economy for the year 2018 are positive, as from the macroeconomic point of view, the Czech Republic has a good basis for minimizing risks, even if inflation continues to rise.
The real estate market in the Czech Republic is still thriving and there is a strong demand for rent. Forecast says that investment in real estate will be very advantageous over the next 2-3 years.
Prague and its commercial properties promise an investment return of around 6% or more. In the area of residential real estate, we move about 3% to 5% in lower percentages.
For small investors, the right path leads through an open fund or qualified investor funds. However, ordinary real estate funds only account for about 2% of the yield, which is more about preserving value. For passive investors (indices and ETF funds), it is again positive that in 2018, the return on passive investment is expected to be around 7.8% per year. In general, it means that the largest companies will grow.
There were also some interesting tips about the stock during the forum. Philip Morris International or banking institutions such as Moneta Money Bank and Komerční banka are worth mentioning. O2 shares should also be interesting.
The US dollar is likely to weaken in 2018, even though the economy will continue to strengthen. Donald Trump has been told that the US economy is very strong and therefore unnecessary to worry and looks very positively from an economic point of view throughout the year 2018. He has successfully completed the tax reform and is now working on changes for US companies that seem to help entrepreneurs and should be beneficial. The US also boasts high employment.
Russia offers a very cheap investment for change, but with investors, there are big risks, so we need to be careful for a few more years. The general risk of investment this year could be the intervention of the political sphere and, of course, lobbying activities.
Emerging Markets (such as smart phones, Internet services, etc.) to date account for up to 42% of world trade thanks to China and India. The projected increase is 4.3%. Developed Countries should have only 2%. Growth of China and India is estimated at 6-7%. Under Emerging Markets, it is ideal for 2018 to invest in countries such as China, India and Brazil.
Most investors should enjoy the outlook for the full year of 2018 and benefit from it in their favor. The European and American economies offer varied opportunities for different types of investments, which would not be a pity to use. Whatever the possible economic crisis was talking about, it does not look like this in the years to come.
Extract from the article on the 13th Investment Forum at Orea Hotel Pyramida (3 January 2018)