Global Market Outlook 2019 - Market themes
Global markets in 2018 have been dominated by the US - its stocks, its corporate earnings and its economy.
How will that dominance play out in 2019 as central banks unwind their balance sheets?
Here Kasia Kiladis, Investment Director, and Eugene Philalithis, Portfolio Manager of FF Global Multi Asset Income, discuss the key market themes for 2019.
Next year is likely to be characterized by the continued shift from quantitative easing to quantitative tightening, with some increased structural volatility. If the Trump administration starts to normalize their trade disputes, we should see some positive upside.
This should broaden the opportunity set for investors, which could include allocating to uncorrelated assets like alternatives, or even defensive assets such as US treasuries or US investment grade.
While emerging markets suffered in the first half of 2018, they are now exhibiting reasonable valuations and attractive fundamentals, in terms of corporate balance sheet strength. This is one asset class that could deliver attractive returns in 2019.