Investment strategy 2020 Forecasts
We expect only sluggish global growth in 2020 of 2.5%, almost unchanged from 2019. Against the backdrop of limited earnings growth and flat to higher bond yields, returns in key equity markets are likely to be in the single-digit range in 2020, while returns on most core government bonds are likely to be negative.
We believe that the global economy and markets will continue to show considerable resilience in the face of these challenges.
Global economyWe expect only sluggish global growth in 2020 of 2.5%, almost unchanged from 2019, but a recession continues to look unlikely given supportive macro policies. De-escalation on the trade war front will be key.
Main asset classesMost asset classes showed a strong performance in 2019. Investors should not expect to see this feat repeated in 2020 although financial assets will likely continue to benefit from generally low yields.
Alternative investmentsAlternative investments have become increasingly established as a building block of portfolios, particularly in today’s world of low-for-longer interest rates and yields.