2019. Robust Stocks, Bonds et al. 2020 Slower Growth, Stable Interest Rates, No Tradewinds.

"The Economist" reports "The cause of a booming Stockmarket are unlikely to last through 2020".





2019 financial markets benefited, from lower interest rates, strong global growth and a late China trade deal. The Fed helped the economy in two ways. First, they reduced rates three times. Second, with corporate-growth slowing cash-strapped entities faced quarterly tax bills, the Fed suddenly made cash available facilitating short-term loans. With growth slowing, with trade benefits less likely and with no signal of lower interest rates, 2020 is likely to regress-to-the-mean. History suggests the same. First, only 12 years since 1928 have been better than 2019. Second, the last year of a U.S. Presidency underperforms. Finally, investors are calculating whether or not rising anti-corporate rhetoric will accelarate lower expectations.


Read the article: https://www.economist.com/node/21777582?frsc=dg%7Ce


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