2020 Economic and Financial Market Outlook – Cyclical recovery to continue in 2020
- Lack of skilled resources led to labour hoarding during the manufacturing recession and prevented spill-over effects to broader economy.
- Overweight emerging markets in a global portfolio.
- Global monetary developments to strengthen cyclical forces.
- ECB and Fed strategy reviews are likely to strengthen inflation expectations.
- ECB asset purchases are unlikely to favour “green-assets”, but climate change considerations should be addressed in economic models and financial stability regulation.
- More expansionary fiscal policies to gain support in the low yield environment.
- Equities with moderate but positive returns in 2020 will remain best-performing asset class.