Markets spent the first half of January buoyed on December’s ebullience. The ‘Phase One’ trade deal agreement encouraged further re-ratings and clearer political waters in the UK bolstered sentiment. We were a great deal more optimistic entering New Year 2020 versus the prior year, however two left-field events confronted investors during the month.
It has been a strong year for equity markets. At the time of writing, the MSCI World Index is up 22%. Arguably the two largest overhangs that have faced investors this year: the Sino-US trade deal and the UK political deadlock, have finally offered some clarity.
It is around this point in the year when the commentarial release their forecasts for the year to come. We will examine some of the themes that have run through 2019 and what we think will shape portfolio returns in 2020.