Why equities will remain in favour

The global equity markets overall may prove directionless in 2020, but individual stocks still look capable of powering ahead. Investors will need to focus on stock-picking

We believe global equity markets face several uncertainties in 2020, particularly around the economy and geopolitics. But with the dividend yield on global stock markets still more attractive than government bond yields, in our analysis, equities may remain a favoured asset class for many investors. 

Will markets take a breather?

Whether consumer spending can continue to buoy economic growth is an open question in 2020. The global economy continues to grow, albeit sluggishly, with the International Monetary Fund expecting growth of 1.7 per cent in both 2019 and 2020 for advanced economies. It has also forecast growth in emerging markets to accelerate