2019 will be a tough act to follow, with widespread gains fueled by central bank easing and falling rates. Equities are riding on high valuations that may have gotten ahead of fundamentals, and the late-cycle profit margin squeeze could intensify further. Traditional fixed income investors could face a reality check as price gains peter out and income reverts to interest rates that are close to historic lows.
Our watchlist will help navigate the challenge of finding returns in 2020. See what we are watching in the economy, which areas of the market we expect to outperform, and what’s in store for the traditional 60/40 portfolio. (Spoiler alert: it’s a zombie – it’s dead, it just doesn’t know it yet.)
