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Central banks around the world supported the rally in equity markets in 2019. We continue to see signs of global economic recovery but expect more market volatility in 2020 than we saw in 2019. We remain slightly underweight equities and overweight on high-quality bonds while we continue to assess the potential global recovery. Here are our key takeaways from BWM Financial’s 2020 Market Outlook Webinar:
- US and global economy appear to be stabilizing after central bank accommodation
- Record expansion can continue as inflation and credit conditions remain in check. Geopolitics is the likely risk for 2020.
- 2019 Equity performance driven by multiple expansion. Expect single digit earnings increase for 2020
- Stocks modestly expensive to history but look attractive compared to bonds
- Ideal scenario would be enough of a correction to get into pessimistic reading while economies continue to improve
- BWM waiting for the opportunity to get more aggressive, should the stars align
Today it’s important to fight the urge to be overly fearful or greedy. This can be especially difficult to do, after a decade of capital market appreciation and a stellar 2019 for U.S. stocks. Expect BWM Financial to make investment changes based on the weight of the evidence – not the headlines or emotion of the day.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence.