No room for complacency in 2020
Headlines in 2019 were dominated by trade wars, astronomical valuation multiples for some technology stocks, the long-awaited correction (and unexpected recovery) in housing across Australia and New Zealand, and importantly – central banks around the globe drastically changing their stance on interest rates; lowering rates to keep the economy and markets moving forward.
This was a major difference to 2018, which saw monetary policy tightening.
The optimistic bull investors still have strength in numbers, but an increasing number of negative bears are emerging from hibernation. Those who argue that benign market conditions will continue courtesy of central banks are crossing swords with those who believe markets aren’t pricing in any/enough risks, and/or valuations are stretched.
Markets are basking in the after-glow of the partial US-China trade deal and continued encouraging signs of stabilisation in the global growth slowdown.
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