After a year of trade wars, rate rises and more volatile markets, we see three big themes for equity markets over the next 12 months.
Trade policy is the single most important source of uncertainty and may act as a deterrent to both the capex wave already under way and to consumer spending.
The trend toward monetary tightening should continue and further unilateral sovereign actions promise more surprises
Fixed Income Outlook
A flattening yield curve, and signs of concern in the US mortgage market are amongst a range of considerations facing investors in 2019.
US equities are likely to outperform those in Europe and emerging markets in 2019, as investors face increased volatility amid rising interest rates and trade uncertainty.
While 2019 may initially provide more of the same for international currency markets, the potential for a significant shift should not be discounted.
There are short-term risks in China, but these are offset by long-term investment opportunities.
As investment challenges grow more complex, our Global Market Outlook is designed to alert investors to portfolio risks and opportunities in the coming year, based on the research of our investment teams.
Research around near-term and longer-term market issues is at the heart of who we are as investors. It drives the kinds of outcome-oriented portfolios we create for clients, drawing on the full range of our beta and alpha solutions as well as our asset allocation expertise.
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