Economic outlook

Chief U.S. Economist Lara Rhame’s 10 for ’20

Lara’s Top 10 watchlist for the economy, markets and investing in 2020

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December 5, 2019 | 10 minute read

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.)

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Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

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Lara Rhame

Chief U.S. Economist + Managing Director

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