Opportunities in the late stage bull market
MANAGING VOLATILITY IN AN AGING BULL MARKET
Although growth is slowing as the economic cycle matures, Citi analysts emphasize that this is not the start of a downturn.
Citi analysts still expect global growth of 3.1% in 2019 paired with inflation slowing its rate of increase from 2.4% in 2019 to 2.5% in 2020.
To recap the past 12 months global equities rose 5.1 per cent in the first three quarters of 2018, tumbling -7.3 per cent in October in reaction to an IMF global growth downgrade, increase in US-China tensions, rise in 10 year US Treasury yields and relative calm in the lead-up to the US midterm elections. Global equity markets then recovered 1.2 per cent in November.
Global growth is being supported on a number of fronts. In the US tightening but still accommodative interest rates continue to stimulate the economy. In Europe domestic demand is increasing and in China the government continues to take supportive measures to stimulate growth.
To read Citi’s Annual Market in full click here
This document is distributed in Australia by Citigroup Pty Limited ABN 88 004 325 080, AFSL No. 238098, Australian credit licence 238098. Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. Before acting on this advice you should consider if it's appropriate for your particular circumstances. You should also obtain and consider the relevant Product Disclosure Statement and terms and conditions before you make a decision about any financial product, and consider if it’s suitable for your objectives, financial situation, or needs. Investors are advised to obtain independent legal, financial, and taxation advice prior to investing. Past performance is not an indicator of future performance. Investment products are not available to US people and may not be available in all jurisdictions.