2019 Global Outlook – What Experts Say

Executive Summary

Optimism is expected to re-enter equity markets as they would likely be the preferred asset class of global investors moving into 2019. Emerging markets look attractive than their developed counterparts as their valuations appear cheap while taking their macroeconomic and corporate fundamentals into consideration. Expectations of a global slowdown in growth have resulted in an excessive beat-down on equities across several markets, setting up the stage for a turnaround in 2019. However, volatility is expected to persist in the equity markets as global and regional risks could sharply derail the upward momentum. Although headwinds such as escalation of trade war, abrupt increase in U.S. interest rates, political risk in European economies, and the end of U.S. growth cycle continue to fluster investor sentiment, the overall outlook on equities remains positive. China is the preferred pick among emerging markets as the impetus provided by government support is expected to revive a sharply corrected market. The U.S. and Japan are the developed markets that warrant a positive outlook as political risks are expected to plague Europe’s fortunes in 2019.