IN THIS QUARTER'S EQUITY OUTLOOK - Download PDF
- A look at key risks and opportunities as we begin 2019
- Why tariff hikes are bad for equities
- What's next for small caps?
Equity investors worldwide greeted the new year with an array of heightened concerns. A difficult fourth quarter brought volatility and annual losses for many major indexes. Among the issues that contributed to the downturn were geopolitical instability, uncertainty about monetary policy, a slowing Chinese economy, and the U.S.– China trade dispute.
Looking ahead, we believe the key risks weighing on equity markets may subside. A resolution of the tariff conflict, even if limited in scope, is quite possible. In China, more aggressive stimulus measures could improve the outlook for both the Chinese economy and global markets. And in the wake of fourth-quarter selloffs, we have the benefit of more attractive valuations for companies whose fundamental prospects are strong.