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Investment Outlook 2019

The bull market of the last few years has caused a number of noticeable differences within asset classes. We highlight some of them in this outlook, as we think that these will offer good investment opportunities in 2019. Although 2018 has not yet ended, we feel confident that it will prove to have been a good year for the global economy. Developed economies have seen above-trend growth, while emerging markets outpaced developed markets, though growth has been below expectations. For the most part, this trend looks set to continue in 2019: we now expect to see sustained, abovetrend growth in developed economies and somewhat stronger growth in emerging countries. This sounds like good news for the financial markets. As growth remains strong, we could see above-average growth in earnings and so far there is no indication of extensive monetary tightening in 2019. However, next year we expect the markets to have two faces. The bright economic picture is expected to be overshadowed by concerns that this long bull market will soon end; think rising interest rates, protectionism, Italy, Brexit. Investors would be well-advised to prepare for these concerns becoming reality