December 14, 2018
Subject | 2019 Investment Outlook Series | Industry views | Institutional | Invesco | Macro views
- If historical precedent holds up, there is still room to be positive on equities as we move into 2019 and on to early 2020.
- The key is to identify companies that can gain market share from technology-enabled advantages in their business model or disruptive shifts in consumer behavior.
- We highlight several areas where technology is enabling disruption and creating opportunities.
As we look forward into 2019, we believe there is continued potential for positive US equity returns, but slowing economic growth may mean more frequent downhills — and more investors losing their way — than during the market’s climb of recent years. Observing the weight of the evidence, we have moved into a late-cycle environment. In our view, the path forward will not rely on choosing growth versus value, or small-cap versus large-cap. We believe it will rely on identifying “share-takers” (companies that can gain market share from technology-enabled advantages in their business model and in consumer behavior) and avoiding “share-losers” (companies that have simply been buoyed in recent years by the expanding economic environment).Comments Off on U.S. growth equities: Change is the fuel for growth