Economic and Strategy Viewpoint

Schroders
By January 18, 2019 19:02

Economic and Strategy Viewpoint

January 2019

  • Growth concerns and tightening liquidity weighed on markets in 2018 and look set to continue in 2019. As the European Central Bank ends QE, we 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. We 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.

Schroders
By January 18, 2019 19:02

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