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2020 Investment Outlook

25 November 2019

Investors are managing vast and free-flowing data amid a noisy market environment, which can at times resemble a flood, increasingly drowning out the fundamentals that matter.

This new age requires investors to be adept at filtering actionable signals out of the chaos, and at focusing on insights that aid their portfolio objectives.

Here, we gather viewpoints from our fixed income, equities, multi-asset, and private funds teams about what to expect in the coming year, how to prepare for it, and how to create opportunities out of the inevitable challenges ahead.

Economics:

A Battle of Three Cycles

In 2020, we see three cycles which will drive global economies. Chief Economist Markus Schomer, CFA, describes how the interaction of these forces are shaping his outlook for next year.

Multi-Asset:

The Third Time Should Be the Charm

Markets should see modest improvements in cash flows next year, due to capitalization rates becoming even more generous, with central banks taking the lead role in the process. Michael Kelly, CFA, Global Head of Multi-Asset, explores what he expects next year and his team’s asset class convictions.

Fixed Income:

A Shift from Synchronized Returns to Dispersion

We expect 2020 to be marked by a continuation of bifurcated risk appetites, creating rising dispersion and greater security selection opportunities. Steven Oh, CFA, Global Head of Credit and Fixed Income, outlines six themes that will define fixed income markets in the year ahead.

Equities:

Cutting Through the Noise with Selectivity

Next gen management, the power of digitalization, and the growth of affluence, particularly in China, are a few of the key investment themes that may drive alpha-generation potential for equity portfolios in 2020. Anik Sen, Global Head of Equities, explains.

Private Funds Group:

Putting Money to Work in the Age of Peak Investing

Within the private funds market, we believe portfolios focused on return strategies that are unlevered with shorter duration may allow for mid-course corrections if – and when – the headwinds come. Steven Costabile, CFA, Global Head of Private Funds Group, explores this, along with other opportunities on the horizon.

Chief Economist Markus Schomer describes how the interaction of the macro cycle, the policy cycle and the political cycle are shaping his outlook for next year.