The bull market has caused a number of noticeable divergences within asset classes. We highlight some of them in this outlook, as we think they will offer good investment opportunities in 2019.
- Growthversusvalue stocks
- Developedversusemerging markets
- USversusthe rest of the world
In an environment where the economic outlook looks promising, the warning ‘turbulence ahead’ seems out of place. But we see clouds on the horizon, including:
- Fed rate hiking
- Trade wars
- Mounting inflationary risks
We don’t expect them to derail the economy just yet, as growth is still too strong. But we do expect concerns to grow as time progresses.
In this outlook we look at the implications for the major asset classes, as well as the opportunities these ‘clouds’ represent.
The bright economic picture is expected to be overshadowed by concerns that this long bull market will soon end. Fueling these fears are issues such as rising interest rates, protectionism, Italy and Brexit. Investors would be well-advised to prepare for these concerns becoming reality.
Peter van der Welle, strategistSpecial themes
Ten things that might move the markets in 2019
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