Low interest rates and tight credit spreads should boost bond performance. However, there are also risks. Swiss Life Asset Managers recommends good sector allocation and security selection for 2020.
The announcement of a “mini trade deal” between the US and China as well as the UK election triggered a festive mood among investors in December. A slight fall in political risks and the “cheap money” of central banks are causing the global economy to appear more stable than was thought a few months ago. But what can investors expect in 2020?
Swiss Life Asset Managers anticipates good bond performance at the start of the year due to stable interest rates and tight credit spreads. However, it also sees an increasing risk of globally rising interest rates, seething political hotspots and weak corporate data in many sectors. In order to generate excess returns in this volatile market environment, Swiss Life Asset Managers recommends a particularly careful selection of sectors, sectors and stocks.