Last year's report anticipated the difficult year ahead for 2015, describing the investment world as 'fragile.' This continues to be the case in 2016, according to this year's report. Many structural problems remain, and investors are increasingly wary of 'quick fixes'.

Claude-Henri Chavanon, NBAD's Head of Global Asset Management said: "The fall in the oil price has complicated investment decisions around the world, and has been described as the 'New Normal'. It is a significant shift in the global investment landscape that investors have to deal with. The risks associated with a strong dollar are amongst those uppermost in our minds, especially insofar as this could exacerbate the reduction in US corporate earnings. However, there are always opportunities arising from a new idea, asset class or company, or due to an existing asset being oversold. Investors will need to exercise patience and then have the courage required to decisively deploy funds when opportunities arise."

According to the report, oil prices are expected to trade in a range of $25-45 during the remainder of the year. Investors are advised to continue to fully emphasize quality government and other investment grade bonds in their portfolios. Whilst headwinds will persist during 2016, NBAD believes attractive investment opportunities will arise, for instance in selected emerging and frontier markets, and also especially within commodities. While a bear market in US equities is likely to unfold, this should lead to buying opportunities in other markets, some of which are already very depressed. Within MENA, for instance, UAE equities could easily be described as being oversold, and cheap in terms of valuation. 

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