Investment Outlook 2019: Opportunity Knocks

Despite pressure for weaker fundamentals in the first half of the year, we are cautiously optimistic about Asian emerging markets in 2019. A slowing Chinese economy and growth downturn will likely cause Chinese regulators to deploy stronger stimulus measures. This, combined with a potential pause of a U.S. rate hike in March, could reduce the pressure for China and other Asian emerging markets in the second half of 2019. While the trade war might bring short-term disruption to the markets, we expect both China and the U.S. to have strong incentives for reaching an agreement, which would result in a less negative outcome than feared by the markets. A trade deal would lead to some supply-chain diversification in the long-term, which would benefit other Asian countries. In spite of the trade tariffs headwinds, we believe global growth is in a slowdown, not a recession.

Download the full investment outlook for 2019.