Outlook 2020: Ten Investing Themes for the Coming Year
Our thoughts on key macro questions, emerging opportunities, and risks in 2020.
Authored by: TJ Scavone
Could the Equity and Bond Markets Both be Right About the Macro Outlook?
Yes. While equity and bond markets don’t often rise in tandem like they have lately, history suggests that both recent moves could be warranted if central bank stimulus successfully extends the cycle. But that is a big “if”; several moving parts cloud the macro outlook, and markets are assuming that central banks can reverse the recent economic slowdown.
US Muni Bonds: The View From the Crow’s Nest
Left unaddressed, the significant and increasing problem of pension underfunding could sink some municipal issuers in the next market downturn. Although investors in high tax brackets will likely continue to benefit from holding municipal bonds as a cornerstone in their portfolios, they should diversify across states and issuers that are better prepared to navigate any rough seas ahead.