December 18, 2019
5 min read
FWU - Expert Corner - FWU Invest S.A.
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This month, we examine 2019 and what it has delivered for investors. Overall, it has been a fruitful year for markets. We examine the most important drivers and highlight pivotal moments. Furthermore, we look forward into the New Year. Do you need to be concerned? What is the outlook? And how will the markets turn? To answer your concerns and questions we will take you through the main points to consider when investing in 2020.
So, take a glance or download the full insight below!
Financial markets around the globe experienced a year to remember in 2019, with solid returns across the board in most regions in the world.
Here are the major investment points to consider when looking back at 2019:
Subsequently, in January, we saw a strong rebound materialising, which has continued for much of the year. Valuations had come down significantly, while there was a sense that sentiment had turned to negative at the end of 2018, meaning many investors were tempted back into the market.
Underpinning this sentiment shift we saw at the beginning of 2019 was a very important change at the world’s most important central bank – the US Federal Reserve. It went from being ‘hawkish’ – meaning in the process of raising rates – to ‘dovish’ – meaning halting hikes and even cutting – in a very short period. The result of this significant shift was a large-scale easing of ‘financial conditions’, whereby interest rates came down across the board and stresses within the financial system were alleviated, resulting in a big boost to all financial assets.
Finally, politics also played a role in market action. Despite various setbacks during the year, in general there has been positive progress on the trade talks between the US and China, with signs that a ‘phase 1’ deal could be struck helping support investor risk appetite. The Trade War has been a major source of uncertainty for investors and businesses, meaning alleviation of this cloud of uncertainty helps reinforce the upward trend in stock markets. In addition, the fact that a ‘no-deal’ Brexit was avoided and that populists in Italy are no longer in power also solidified the investment backdrop. All in all, investors can be happy with 2019, especially when compared to 2018.