Portfolio Managers Jeremiah Buckley and Marc Pinto believe equity valuations look reasonable heading into 2020, thanks to low interest rates, healthy consumer spending and strong earnings growth, particularly among companies on the right side of technological and economic disruption.
- In our opinion, the outlook for equities in 2020 is positive for a number of reasons. For one, we think inflation and interest rates will stay low next year, an environment that tends to be supportive of stocks.
- Second, the U.S. consumer was a bright spot in 2019 and could continue to be so in 2020, so long as trade disputes, the U.S. election and other political events remain manageable.
- Finally, many companies sitting on the right side of technological and economic disruption are delivering strong earnings growth, helping support multiples.
Which market trends should investors
watch in the year ahead?
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