Foreign media said that in 2019, when the stock market and bond market rose together, the investment circle will still face many variables in 2020, including the cooling of trade risks, but the situation is still unpredictable, the brexit negotiations in the UK and the upcoming US presidential election. The following are the five investment trends in 2020 predicted by analysts compiled by Taiwan's economic daily on December 31, 2019:
Investors strengthen defensive operations
JPMorgan Chase predicts that 2020 will be a year full of twists and turns. Although the U.S. economy is not expected to fall into recession, the risk of landslide is increasing. Therefore, it is suggested to conduct defensive operations with technology, finance and energy stocks to avoid focusing on pure defensive stocks such as real estate, utilities and consumer necessities stocks, because U.S. stocks may still have room for growth of 1% to 6% in 2020.
Bank of America shares are expected to turn around
Some analysts from Bank of America, Citigroup and other institutions believe that bank stocks are expected to reverse the decline. Cassidy, capital market analyst at Royal Bank of Canada, said that due to favorable factors such as a stable economic situation, resilient U.S. consumers and increased M & A activities, it is expected to continue to support U.S. bank stocks in 2020.
The euro looks up
Bloomberg analysts expect that due to favorable factors such as improved global economic prospects, easing political tensions and cooling trade risks, the euro is expected to appreciate more than 4% against the US dollar in 2020 and rise to US $1.16 at the end of the year, becoming the best performing currency in the world.
Emerging markets are expected to continue to rebound
Investors interviewed by Bloomberg expect that the performance of assets in emerging countries will be better than that in developed countries, the Russian Ruble will become the first choice of emerging currencies in 2020, and Indonesia is the most popular target in emerging stocks and bond markets. Analysts believe that low global interest rates will encourage investors to seek higher yielding assets and help support emerging markets.
Emerging Asian currencies outperformed bonds
Gore, head of overall Asia strategy at Deutsche Bank, expects emerging Asian currencies to outperform bonds in 2020 as the central bank suspends expanding loose monetary policy. He believes that the depreciation of the US dollar in 2020 should be conducive to Asian currencies sensitive to the trade boom, such as the won and the Malaysian Ringgit.
Source: reference message