InvestNow News – 16th Jan 20 – Legg Mason – Global Outlook 2020
Our managers expect positive growth for the world economy in 2020, but the pace may continue to slow. There will be selective opportunities for gains, but at a price: episodes of market volatility driven by political and policy concerns may test investors’ resolve along the way.
3 KEY THEMES
Gradual Growth
Investors should expect global growth to advance in 2020, underpinned by the largesse of central banks. But the pace of expansion may continue to slow, with the potential for income and return somewhat muted.
Persistent Volatility
Some macro risks, such as an unruly Brexit, appear to be moderating, yet the U.S.- China trade relationship remains a major source of uncertainty. Markets remain highly sensitive to the news cycle and are likely to test investors’ patience during the year amid shifting expectations on rates, politics, and earnings.
Cautious Confidence
The challenges surrounding markets now merit caution, but selective opportunities continue to surface across asset classes for active managers with specialized expertise and disciplined processes. Looking beyond traditional asset classes, small-caps, real estate, emerging markets, infrastructure and alternatives all merit consideration heading into the new year.