2019 – a list of lists regarding the macro investment outlook
By Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital
2017 was a great year for well diversified investors – returns were solid (balanced super funds returned around 10%) and volatility was low. So optimism was high going into 2018 but it turned out to be anything but great for investors who saw poor returns (average balanced super funds look to have lost around 1-2%) and volatile markets. As a result, and in contrast to a year ago, there is much trepidation about the year ahead. Having just written lists for Christmas presents and New Year resolutions, I was again motivated to provide a summary of key insights and views on the investment outlook in simple point form. In other words, a list of lists.
– Despite continued volatility, 2019 is likely to be better for diversified investors than 2018 was.
– Recession is unlikely and so too is a long and deep bear market in shares.
– Watch the US trade war, the Fed, global business conditions indicators, Chinese growth, politics and the Sydney and Melbourne property markets.
Read the complete financial snapshot.
If you have any questions or concerns about where your investments are heading, please contact us. We would be happy to speak with you.