Schroders has released their January 2019 Economic and Strategy Viewpoint.
In addition to a succinct review of why 2018 was a tough year for investors, the report looks at three themes for 2019 and some black swans. In summary, it highlights:
- Growth concerns and tightening liquidity weighed on markets in 2018 and look set to continue in 2019. As the European Central Bank ends QE, Schroders estimate that global liquidity will contract further this year, keeping pressure on some of the riskier areas of finance.
- Investors will look for governments to boost growth through fiscal policy and in emerging markets will seek relief from a stronger dollar as the Fed brings the tightening cycle to a close.
- Schroders analysts also note that following the de-rating at the end of 2018, equity markets are better positioned for disappointment than a year ago.
- Black swans include another Eurozone crisis, the UK remaining in the EU, military action and Trump not running for re-election.
- Full report: For the full Schroders Economic and Strategy Viewpoint January 2019 click here
- Infographic: For an infographic detailing the Global Economic Outlook – click here