Investing Outlook for 2016

Money managers are setting their sights on the 2016 investment picture.
For us,it's the Euro-zone and Japan,which are benefitting from quantitative easing,said Kevin Nicholson,CFA,of Riverfront Investments in Richmond,Virginia.The US is going to have single-digit returns in 2016.When you look at Europe,they out-earned the US for the first time in a long time.We think that's going to continue.*
We like banks.We believe their low loan losses are beneficial and wages are starting to pick up.As consumer confidence builds,banks' confidence builds.*
We're staying away from energy at the moment,Mr.Nicholson noted.*
Philip White,President and CEO of Sotheby's International Realty Affiliates LLC,a Realogy Holdings subsidiary,said it's taken a long time to get to this recovery point.We've had a very good year,where we've outpaced the market-by two to one,actually.We have seen fairly stable pricing.
I think the luxury market is even stronger than before the crash.It's stable,less erratic.We are seeing a little drop-off in international buyers.We don't think this will be a long period of time,but they are a very important factor in the luxury market,and they will continue to be,according to Mr.White.*
Robert Plaza of Key Private Bank likes Walmart.Most of the bad news is already priced in,Mr.Plaza said.We think the risk-reward profile is promising.I see little earnings risk going into 2016.With only five buy recommendations on it,they're speed bump-high expectations at this point.*
Realogy Holdings Corp (RLGY),Walmart Stores Inc (WMT),iShares MSCI Japan ETF (EWJ),iShares Europe ETF (IEV)

Prologis Industrial REIT Sees Good Signs

Prologis is the world's largest industrial real estate investment trust.CEO Hamid Moghadam cites FedEx,UPS,Amazon and Wal-Mart as being among the warehouse firm's largest customers.We think economic growth and the lack of construction is gonna give us pricing power,Mr.Moghadam said.Ecommerce is probably the biggest renter and housing the least,and those in the middle are also growing.
Housing affects our smaller buildings.Under 100,000 square feet,we have about 10% vacancy.That's finally happening this year.
Overseas,we're seeing really good demand on domestic consumption.Japan is doing well because it's changing from an export to a domestic import economy.Spain,Italy and the UK are going strong.France is the weakest.President Hollande's policies have frightened people,and there's a lot of flight capital.
If occupancies drop to the 90s or below as in 2009,I get worried.We're a conservative bunch and we'd like to see it higher,Mr.Moghadam admitted.
UBS is to increase its Asia corporate advisory head count by 10% on the region's growth forecast.
Germany's industrial output was up in February on economic recovery.
Alcoa's earnings topped estimates on growing demand for aircraft.
Prologis(PLD),UBS AG(UBS),Alcoa Inc(AA)