CIBC Asset Management Perspectives—New growth needs new tools
Although the global economy clearly slowed in 2019, investors remained optimistic and propelled equity markets to all-time highs. We don’t expect a blockbuster growth year in 2020, but central banks will likely set the stage to allow governments to provide fiscal help and stimulate growth.
Asset class highlights
: A stabilizing economic cycle could trigger a rotation away from U.S. equities in favour of more cyclical markets such as emerging market equities.
: Disappointing economic growth and the low risk of inflationary pressure from the energy sector should keep a lid on bond yields.
: We believe it’s too soon to call for a widespread U.S. dollar trend reversal, but the greenback will be under increased pressure in 2020.
: The de-escalation in the trade dispute, along with a phase-one trade deal, will provide some relief for Chinese growth starting in Q2 2020.
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