Our mid-year Global Market Outlook highlights attractive opportunities in the second half of 2018, with a backdrop of greater uncertainty and volatility ahead.
Does 2018 represent a cyclical peak in global growth or are we finally embarking on a structural breakout? Global growth is adjusted upward to 3.9% from 3.7% for the year, slowing slightly in 2019. Could inflation, runaway protectionism or oil prices roil growth and inflation?
Global Equities Outlook
Even as US large-caps benefit from increased capital expenditure, the time is right to be more defensive.
Fixed Income Outlook
Global bonds may face headwinds in the second half of the year due to monetary tightening, but growth and inflation fundamentals should remain favorable.
Emerging Markets Outlook
Emerging markets (EM) have come under pressure in the second quarter due to idiosyncratic problems in a few countries as well as global trade tensions, a strengthening US dollar and higher US Treasury yields. However, across the EM universe, economic fundamentals remain broadly supportive, inflation relatively under control and currencies undervalued in aggregate.
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.
Important Risk Information
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors.
State Street Global Advisors does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that State Street Global Advisors will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.