The attached note provides a summary of key insights and views on the investment outlook for 2020 in simple point form. The key points are as follows:
- Despite the ongoing bouts of volatility, 2020 is likely to provide solid investment returns, albeit slower than seen in 2019?
- Recession remains unlikely (it’s a bigger risk in Australia) & so too is a long deep bear market shares.
- Watch US trade wars, the US election, the US/Iran conflict, global business condition indicators, and monetary versus fiscal stimulus in Australia.
After the poor returns for investors in 2018, 2019 turned out surprisingly well with average balanced growth superannuation funds looking like they have returned around 15%.
Source: Mercer Investment Consulting, Morningstar, AMP Capital
But can it continue this year? Particularly with an intensification of the US/Iran conflict adding to global uncertainty and the drought and horrendous bushfires further weighing on the Australian economy. Here is a summary of key insights and views on the investment outlook in simple point form.