December 14, 2018
Subject | 2019 Investment Outlook Series | Industry views | Institutional | Invesco | Macro views
- The overvaluation of structural growth stocks, such as technology stocks, is unsustainable, in our view.
- For markets used to easy money, the transition to a more ‘normal’ period for central banks is likely to pose a challenge.
- The European market looks a lot more attractively valued than the US, especially those stocks more sensitive to the direction of the economy, such as banks.
The outlook for global growth has become more mixed. While the synchronised economic expansion that I discussed in this piece last year is less widespread today, it should still be sufficient for corporate earnings to grow. Amid continued regime change – quantitative easing has given way to quantitative tightening, and interest rates are rising – the US continues to press ahead, while there is less momentum elsewhere.Leave a comment