<br />
®<br />
Accelerating global growth:<br />
profits and pitfalls<br />
Outlook 2018<br />
Outlook 2018 Watchlist<br />
The average client portfolio has<br />
47% of assets that aren’t aligned<br />
to the recommended allocation.*<br />
How does yours compare?<br />
Failing to follow an established long-term plan is one of<br />
the main reasons why families can drift below the world’s<br />
wealthiest over time.<br />
To help keep your portfolio aligned to your recommended<br />
allocation and to our investment themes, we can provide<br />
you a detailed report showing how your portfolio compares<br />
to key benchmarks.<br />
Your relationship team can then recommend ways for you<br />
to address any issues identified.<br />
To request your report, please reach out to your Banker<br />
or Investment Counselor.<br />
*Source: Citi Private Bank, as of 21 Nov 2017. Recommended allocation is the reference<br />
allocation that reflects our understanding of a client<a title="Outlook 2018 page 1" href="http://viewer.zmags.com/publication/41456323?page=1"> ® Accelerating global growth: profits and pi</a>
<a title="Outlook 2018 page 2" href="http://viewer.zmags.com/publication/41456323?page=2"> Outlook 2018 Watchlist The average client portf</a>
<a title="Outlook 2018 page 3" href="http://viewer.zmags.com/publication/41456323?page=3"> Accelerating global growth: profits and pitfalls </a>
<a title="Outlook 2018 page 4" href="http://viewer.zmags.com/publication/41456323?page=4"> Contents 2 Go global now: riding the g</a>
<a title="Outlook 2018 page 5" href="http://viewer.zmags.com/publication/41456323?page=5"> Foreword If anyone had predicted that synchronou</a>
<a title="Outlook 2018 page 6" href="http://viewer.zmags.com/publication/41456323?page=6"> Go global now: riding the global expansion’s seco</a>
<a title="Outlook 2018 page 7" href="http://viewer.zmags.com/publication/41456323?page=7"> We enter 2018 with a full allocation to US equiti</a>
<a title="Outlook 2018 page 8" href="http://viewer.zmags.com/publication/41456323?page=8"> Figure 6. Global equities and corporate earnings </a>
<a title="Outlook 2018 page 9" href="http://viewer.zmags.com/publication/41456323?page=9"> Figure 7. The Fed’s asset holdings plan Fed bal</a>
<a title="Outlook 2018 page 10" href="http://viewer.zmags.com/publication/41456323?page=10"> The value of going global In recent years, US-do</a>
<a title="Outlook 2018 page 11" href="http://viewer.zmags.com/publication/41456323?page=11"> Politics, security, and world trade: what could g</a>
<a title="Outlook 2018 page 12" href="http://viewer.zmags.com/publication/41456323?page=12"> Populism hasn’t gone away While populist sentime</a>
<a title="Outlook 2018 page 13" href="http://viewer.zmags.com/publication/41456323?page=13"> Figure 2. The global political calendar for 2018 </a>
<a title="Outlook 2018 page 14" href="http://viewer.zmags.com/publication/41456323?page=14"> Figure 4. Korean equities’ swift recoveries Kore</a>
<a title="Outlook 2018 page 15" href="http://viewer.zmags.com/publication/41456323?page=15"> Risk management begins with global diversification</a>
<a title="Outlook 2018 page 16" href="http://viewer.zmags.com/publication/41456323?page=16"> Building great portfolios Gregory van Inwegen, Gl</a>
<a title="Outlook 2018 page 17" href="http://viewer.zmags.com/publication/41456323?page=17"> Follow the plan Behind every great portfolio is </a>
<a title="Outlook 2018 page 18" href="http://viewer.zmags.com/publication/41456323?page=18"> Figure 2. Global diversification has beaten US hom</a>
<a title="Outlook 2018 page 19" href="http://viewer.zmags.com/publication/41456323?page=19"> One possible explanation for this behavior is tha</a>
<a title="Outlook 2018 page 20" href="http://viewer.zmags.com/publication/41456323?page=20"> Cash is not king Although we always stress the c</a>
<a title="Outlook 2018 page 21" href="http://viewer.zmags.com/publication/41456323?page=21"> Address risk To seek the higher returns necessar</a>
<a title="Outlook 2018 page 22" href="http://viewer.zmags.com/publication/41456323?page=22"> Opportunistic investing alongside core portfolios</a>
<a title="Outlook 2018 page 23" href="http://viewer.zmags.com/publication/41456323?page=23"> As with core portfolios, a disciplined approach i</a>
<a title="Outlook 2018 page 24" href="http://viewer.zmags.com/publication/41456323?page=24"> The long-term view Gregory van Inwegen, Global He</a>
<a title="Outlook 2018 page 25" href="http://viewer.zmags.com/publication/41456323?page=25"> Extreme Downside Risk (EDR) is a measure used to </a>
<a title="Outlook 2018 page 26" href="http://viewer.zmags.com/publication/41456323?page=26"> Our favored markets for 2018 We enter 2018 with a</a>
<a title="Outlook 2018 page 27" href="http://viewer.zmags.com/publication/41456323?page=27"> LATIN AMERICA Equity EPS growth forecast 20181 </a>
<a title="Outlook 2018 page 28" href="http://viewer.zmags.com/publication/41456323?page=28"> Asia Portfolio Europe Latin America perspec</a>
<a title="Outlook 2018 page 29" href="http://viewer.zmags.com/publication/41456323?page=29"> Asia: leaders and laggards Ken Peng, Investment S</a>
<a title="Outlook 2018 page 30" href="http://viewer.zmags.com/publication/41456323?page=30"> Figure 1. Key regional economic data Real GDP </a>
<a title="Outlook 2018 page 31" href="http://viewer.zmags.com/publication/41456323?page=31"> Equities EM Asian equities performed strongly in</a>
<a title="Outlook 2018 page 32" href="http://viewer.zmags.com/publication/41456323?page=32"> Figure 4. Our favored Asia sectors Mkt cap </a>
<a title="Outlook 2018 page 33" href="http://viewer.zmags.com/publication/41456323?page=33"> In external Asian bond markets, valuations have n</a>
<a title="Outlook 2018 page 34" href="http://viewer.zmags.com/publication/41456323?page=34"> Foreign exchange Driven by US tax reforms, the U</a>
<a title="Outlook 2018 page 35" href="http://viewer.zmags.com/publication/41456323?page=35"> Europe: continued improvement Jeffrey Sacks, Inve</a>
<a title="Outlook 2018 page 36" href="http://viewer.zmags.com/publication/41456323?page=36"> Figure 1. Key regional economic data Real GDP </a>
<a title="Outlook 2018 page 37" href="http://viewer.zmags.com/publication/41456323?page=37"> A further UK political risk is if the current min</a>
<a title="Outlook 2018 page 38" href="http://viewer.zmags.com/publication/41456323?page=38"> Figure 3. Our favored European sectors Mkt cap </a>
<a title="Outlook 2018 page 39" href="http://viewer.zmags.com/publication/41456323?page=39"> Foreign exchange Still, low yields offer very li</a>
<a title="Outlook 2018 page 40" href="http://viewer.zmags.com/publication/41456323?page=40"> Latin America: recovery continues Jorge Amato, In</a>
<a title="Outlook 2018 page 41" href="http://viewer.zmags.com/publication/41456323?page=41"> Elections and trade Idiosyncratic country risks </a>
<a title="Outlook 2018 page 42" href="http://viewer.zmags.com/publication/41456323?page=42"> Equities We enter 2018 overweight most Latin Ame</a>
<a title="Outlook 2018 page 43" href="http://viewer.zmags.com/publication/41456323?page=43"> Figure 3. Returns tracking earnings growth Tota</a>
<a title="Outlook 2018 page 44" href="http://viewer.zmags.com/publication/41456323?page=44"> Favored markets and sectors Our most favored nat</a>
<a title="Outlook 2018 page 45" href="http://viewer.zmags.com/publication/41456323?page=45"> Fixed income Latin American fixed income markets </a>
<a title="Outlook 2018 page 46" href="http://viewer.zmags.com/publication/41456323?page=46"> Foreign exchange Latin American currencies conti</a>
<a title="Outlook 2018 page 47" href="http://viewer.zmags.com/publication/41456323?page=47"> North America: expansion extended Charles Reinhar</a>
<a title="Outlook 2018 page 48" href="http://viewer.zmags.com/publication/41456323?page=48"> We believe tax reform will more likely than not o</a>
<a title="Outlook 2018 page 49" href="http://viewer.zmags.com/publication/41456323?page=49"> Equities We enter 2018 with US equities as the l</a>
<a title="Outlook 2018 page 50" href="http://viewer.zmags.com/publication/41456323?page=50"> Figure 4. Our favored North American sectors Mkt</a>
<a title="Outlook 2018 page 51" href="http://viewer.zmags.com/publication/41456323?page=51"> Although information technology was up 38% for th</a>
<a title="Outlook 2018 page 52" href="http://viewer.zmags.com/publication/41456323?page=52"> Prepare for rising rates Rising rates can create</a>
<a title="Outlook 2018 page 53" href="http://viewer.zmags.com/publication/41456323?page=53"> Our themes 49</a>
<a title="Outlook 2018 page 54" href="http://viewer.zmags.com/publication/41456323?page=54"> Our themes: a look-back and look-ahead Steven Wie</a>
<a title="Outlook 2018 page 55" href="http://viewer.zmags.com/publication/41456323?page=55"> Figure 1. Performance of 2017 themes and ideas L</a>
<a title="Outlook 2018 page 56" href="http://viewer.zmags.com/publication/41456323?page=56"> Allocating to infrastructure remains compelling </a>
<a title="Outlook 2018 page 57" href="http://viewer.zmags.com/publication/41456323?page=57"> Figure 2. The rise of the robot stocks in 2017 S</a>
<a title="Outlook 2018 page 58" href="http://viewer.zmags.com/publication/41456323?page=58"> Core income strategies Even after rising in 20</a>
<a title="Outlook 2018 page 59" href="http://viewer.zmags.com/publication/41456323?page=59"> Seeking yield in all the right places Kris Xippol</a>
<a title="Outlook 2018 page 60" href="http://viewer.zmags.com/publication/41456323?page=60"> Core income strategies Even in today's low-rate </a>
<a title="Outlook 2018 page 61" href="http://viewer.zmags.com/publication/41456323?page=61"> EXPOSURE TO VARIED SOURCES OF YIELD MAY E</a>
<a title="Outlook 2018 page 62" href="http://viewer.zmags.com/publication/41456323?page=62"> Take the high road Simply investing in the highe</a>
<a title="Outlook 2018 page 63" href="http://viewer.zmags.com/publication/41456323?page=63"> Figure 1. US MBS outperformance in periods of ris</a>
<a title="Outlook 2018 page 64" href="http://viewer.zmags.com/publication/41456323?page=64"> Five-year India real yields of near 4.5% are the </a>
<a title="Outlook 2018 page 65" href="http://viewer.zmags.com/publication/41456323?page=65"> It should be noted that investing in either priva</a>
<a title="Outlook 2018 page 66" href="http://viewer.zmags.com/publication/41456323?page=66"> Emerging opportunities After the strong gains </a>
<a title="Outlook 2018 page 67" href="http://viewer.zmags.com/publication/41456323?page=67"> Deep discounts in an expensive world Steven Wieti</a>
<a title="Outlook 2018 page 68" href="http://viewer.zmags.com/publication/41456323?page=68"> Figure 1. EM equities’ relative cheapness 200 E</a>
<a title="Outlook 2018 page 69" href="http://viewer.zmags.com/publication/41456323?page=69"> Cheaper markets and cheaper currencies Not only </a>
<a title="Outlook 2018 page 70" href="http://viewer.zmags.com/publication/41456323?page=70"> Figure 4. Corporate debt growth reverses Change</a>
<a title="Outlook 2018 page 71" href="http://viewer.zmags.com/publication/41456323?page=71"> The re-emergence of emerging markets We see EMs </a>
<a title="Outlook 2018 page 72" href="http://viewer.zmags.com/publication/41456323?page=72"> Emerging opportunities Although not a one-way in</a>
<a title="Outlook 2018 page 73" href="http://viewer.zmags.com/publication/41456323?page=73"> EVEN AFTER STRENGTHENING IN 2017, EM CURRENCY </a>
<a title="Outlook 2018 page 74" href="http://viewer.zmags.com/publication/41456323?page=74"> Exploiting volatility Financial markets includ</a>
<a title="Outlook 2018 page 75" href="http://viewer.zmags.com/publication/41456323?page=75"> Preparing for volatility’s comeback Steven Wietin</a>
<a title="Outlook 2018 page 76" href="http://viewer.zmags.com/publication/41456323?page=76"> Exploiting volatility After unusual calm in 2017,</a>
<a title="Outlook 2018 page 77" href="http://viewer.zmags.com/publication/41456323?page=77"> HEDGE FUND STRATEGIES Diversifier* strategies typi</a>
<a title="Outlook 2018 page 78" href="http://viewer.zmags.com/publication/41456323?page=78"> Using volatility and hedges to help sustain profit</a>
<a title="Outlook 2018 page 79" href="http://viewer.zmags.com/publication/41456323?page=79"> Raise the shield For investors who want to prote</a>
<a title="Outlook 2018 page 80" href="http://viewer.zmags.com/publication/41456323?page=80"> Figure 1. Higher volatility, hedge fund outperfor</a>
<a title="Outlook 2018 page 81" href="http://viewer.zmags.com/publication/41456323?page=81"> Figure 2. Diversifiers during dislocations </a>
<a title="Outlook 2018 page 82" href="http://viewer.zmags.com/publication/41456323?page=82"> Transforming commerce Firms that disrupt marke</a>
<a title="Outlook 2018 page 83" href="http://viewer.zmags.com/publication/41456323?page=83"> Accelerating transformation Steven Wieting, Globa</a>
<a title="Outlook 2018 page 84" href="http://viewer.zmags.com/publication/41456323?page=84"> The transformation of healthcare Joseph Cordi, Eq</a>
<a title="Outlook 2018 page 85" href="http://viewer.zmags.com/publication/41456323?page=85"> The aging of the world’s population is set to hav</a>
<a title="Outlook 2018 page 86" href="http://viewer.zmags.com/publication/41456323?page=86"> The transformation of healthcare Disruptive treat</a>
<a title="Outlook 2018 page 87" href="http://viewer.zmags.com/publication/41456323?page=87"> Against this backdrop, immunotherapy could have s</a>
<a title="Outlook 2018 page 88" href="http://viewer.zmags.com/publication/41456323?page=88"> Medical technologies accelerate transformation I</a>
<a title="Outlook 2018 page 89" href="http://viewer.zmags.com/publication/41456323?page=89"> The disruption of money and finance Steven Wieting</a>
<a title="Outlook 2018 page 90" href="http://viewer.zmags.com/publication/41456323?page=90"> Bitcoin is just one of a growing number of crypto</a>
<a title="Outlook 2018 page 91" href="http://viewer.zmags.com/publication/41456323?page=91"> Glossary 87</a>
<a title="Outlook 2018 page 92" href="http://viewer.zmags.com/publication/41456323?page=92"> Asset class definitions Cash is represented by US</a>
<a title="Outlook 2018 page 93" href="http://viewer.zmags.com/publication/41456323?page=93"> The HFRI Relative Value (Total) Index is an equal</a>
<a title="Outlook 2018 page 94" href="http://viewer.zmags.com/publication/41456323?page=94"> a proprietary methodology and database. For a giv</a>
<a title="Outlook 2018 page 95" href="http://viewer.zmags.com/publication/41456323?page=95"> Disclosures In any instance where distribution </a>
<a title="Outlook 2018 page 96" href="http://viewer.zmags.com/publication/41456323?page=96"> None of the financial instruments or other product</a>
<a title="Outlook 2018 page 97" href="http://viewer.zmags.com/publication/41456323?page=97"> • Regulatory changes affecting pipeline fees </a>
<a title="Outlook 2018 page 98" href="http://viewer.zmags.com/publication/41456323?page=98"> In the United Arab Emirates and Bahrain Citi Priv</a>
<a title="Outlook 2018 page 99" href="http://viewer.zmags.com/publication/41456323?page=99"> </a>
<a title="Outlook 2018 page 100" href="http://viewer.zmags.com/publication/41456323?page=100"> </a>