Your Q1 2020 outlook

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There are lots of decisions we have to make when it comes to investing your money, from understanding how much risk you want to take and working out what investments to put your money into, to designing strategies so we can get you the best possible returns. The economic cycle and market conditions are really important when it comes to making these decisions, because they can affect how your investments perform, so we always play close attention to what’s going on.

To keep you updated, each quarter, we speak to Trevor Greetham, Royal London’s Head of Multi Asset Investments, to find out what’s been going on in the global economy and how this could have an impact on your money.

With a lot going on in politics and financial markets, what could be in store in Q1 2020?

Hello, I’m Trevor Greetham, Head of Multi-Asset at Royal London Asset Management, and I’m going to speak to you today about the outlook for the world economy and for investments.

The world economy slowed down quite a lot in 2019, because of the trade war between the US and China. But because inflation was low around the world, central banks have lowered the cost of money and we’re starting to see signs of global growth picking up again going into 2020. That’s a generally positive backdrop for investments.

In the UK, we’ve just finished the General Election. We now know that we are leaving the European Union, but we still don’t know quite how that will be done. So we may have a closer or a looser trading relationship with Europe, and that means there will be some uncertainty still hanging over the economy for some time to come. So, potentially some bumps along the way.

But the way we see it, we’re between one General Election in the UK and a November 2020 General Election in the US. President Trump is up for re-election, and what that means is he’s likely to be a little less destructive on the global stage as far as growth is concerned. We think he’ll want the US economy and global economy to strengthen between now and November.

That adds to our confidence that global growth should pick up over 2020. There may be some bumps along the way, but we’re expecting company shares to have another pretty good year, and that’s where we’re tilting our investments in the multi-asset funds that we manage.

We’ll come back to you in three months’ time and update you on the situation as the year progresses. Thank you very much.  

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