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2020 Investment Outlook

Published

2019 saw some significant events that reinforced the trend in place since 2009 and increased anxiety that the end is near yet confirmed the market’s ability to climb a wall of worry. Here’s a look at several of those key events:

  • The Federal Reserve (Fed) pivoted from hawkish in 2018 to dovish in 2019. The Federal Open Market Committee (FOMC) cut the Fed Funds Rate by 75 basis points (bps) with potentially another one in the cards.
  • The 10- and 2-year yield curves inverted for roughly 40 days in August through October, which amplified the recessionary calls.
  • Earnings per share (EPS) in the United States went from historically above-average gains to negative year-over-year in the third quarter.
  • After a record high number of asset and debt classes generated a negative total return in 2018 (since 1901), the global markets are on pace to record a historic low number of asset classes with negative total returns in 2019.

AAM’s Complete 200 Investment Outlook

Disclosures

This commentary is provided for informational purposes only. The indexes referenced in this publication are not available for direct investment. This publication is not an offer or solicitation of an offer to buy or sell any product or service. Unless otherwise stated, all information and opinions contained in this publication were produced by Advisors Asset Management, Inc. (AAM) and other sources believed by AAM to be accurate and reliable. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. All expressions of opinions are as of December 5, 2019 and are subject to change without notice. 

All AAM employees, including research associates, receive compensation that is based in part upon the overall performance of the firm. AAM may make a market in or have other financial interests in any given sector or security with which this analysis suggests may be benefited from its conclusions. Investors should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Past performance does not guarantee future performance. 

The charts/graphs included in this publication do not reflect past or current recommendations made by AAM, should be considered an academic treatment of empirical data and should not be used to predict security prices or market levels. Any suggestion of cause and effect or of the predictability of economic cycles or investment cycles is unintentional. AAM’s Investment Outlook was written using empirical research and analysis by highly experienced market observers and is designed for educational purposes only. This publication should only be considered as a tool in any broker’s, dealer’s or advisor’s investment decision matrix. Investors should consult their financial advisor when applying the assumptions in this publication.

Not FDIC Insured. Not Bank Guaranteed. May Lose Value. ©2019 Advisors Asset Management, Inc. All rights reserved. 18925 Base Camp Road • Monument, CO 80132 • www.aamlive.com

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