Jan. 21, 2020
Investment Outlook Q4 2019
- The economy continued to surprise the pessimists as it recovered from its recent slowdown and resumed its expansion.
- Stock markets climbed the proverbial wall of worry to close at record highs while fears of recession, trade wars and Brexit grabbed media headlines.
- Globally, there have been over 50 central bank interest rate cuts in the past six months, which is the highest number since the financial crisis in 2008.
- We are optimistic that economic growth will continue as manufacturing destocking ends, along with the strong possibility of a fiscal stimulus package in the U.S.
- Central bank intervention will continue to be needed in the absence of truly significant fiscal policy stimulus.
- Long-term trend rate of economic growth will continue to be modest even without the added uncertainty from protracted trade wars and Brexit negotiations.