13-Jan-2019
Global Outlook Q1 19

Welcome to our quarterly outlook where we review the fourth quarter and the full year market action before sharing our thoughts for the months to come.
 
While 2017 was the year of the “Goldilocks economy”, 2018 has turned to be the year of trade conflicts, interest rate concerns and the rise of market volatility. As global equity markets peaked in January and went through a brutal cyclical bear market in the last quarter, the calendar effect is disastrous as 93% of asset classes ended the year into negative territory. For most investors, 2018 was the worst year since the great financial crisis.
 

 As highlighted in the market outlook section, asset allocators will have to navigate into choppy waters in 2019. Still, it will be another year of global economic growth which is likely to provide us with attractive opportunities – so let’s ride the wave before the next recession emerges.
After a disappointing 2018, equities remain our favorite asset class. Multiples have compressed appreciably, and some markets are looking quite cheap on a fundamental basis. However, we expect market corrections to be more frequent and likely going forward as the economy is in transition. We remain thus long risk assets in a selective way.
 
While our forecasts and views are always subject to changes, our commitment to serve our clients is not.
 
We remain at your full disposal for any specific issues you would like to discuss, so please do not hesitate to contact us. 

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