MINNEAPOLIS (November 20, 2019) – The U.S. economy is in the longest period of expansion since World War II, which has investors and analysts eyeing 2020 as a pivotal year.
To showcase its unique perspectives and highlight compelling investment opportunities in the year ahead, RBC Wealth Management – U.S. (RBCWM) introduces its Global Insight Outlook report series, providing insight into U.S. equities, global fixed income and other key asset classes.
“‘Unchartered territory’ is an overused phrase, but we believe it applies to the current business cycle,” said Kelly Bogdanova, vice president and portfolio analyst at RBC Wealth Management – U.S. “While the global economy is in the later stage of current expansion, like the early-cycle and mid-cycle phases before it, this stage could prove to be longer than usual. Developed economies are set to continue growing, but recession indicators are flashing caution and our Global Insight Outlook serves to help investors navigate the year ahead.”
“We have a constructive outlook for stocks for 2020,” Bogdanova said. “The economic expansion should have further to run, underpinned in our view by accommodative credit conditions everywhere, the robust good health of the American consumer, easing U.S.-China trade tensions, and the likelihood that most developed economies will deliver some fiscal stimulus. Corporate earnings will likely increase, as should dividends and stock buybacks, pushing share prices higher. All of this should transform the gloom of 2019 around trade and recession talk into a less fraught outlook for the economy. What it shouldn’t change is the investor’s commitment to vigilance.”
Reasons to be bullish:
Reasons to be cautious:
“Following a banner year for fixed income performance in 2019, 2020 is likely to deliver a far more challenging environment,” said Tom Garretson, fixed income portfolio strategist at RBC Wealth Management – U.S. “Our principal focus for global fixed income investors is to avoid letting low yields push them out of their comfort zone and making decisions that could put their portfolios and long-term investment objectives in jeopardy.”
A few key insights from the report, linked here, include:
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