Why ‘Brexit boom’ could last 18 months

TL;DR

Interest rates are expected to remain low, creating a supportive environment for growth stocks. The US tech boom is likely to continue, while Europe and Japan could benefit from a reaccelerating global economy. Ethical investing is becoming mainstream, and active managers need to offer real value for money.

Transcript

hello with me today I have david jane multi-asset fund manager at premier Myton david thanks for joining us investing in 2020 2019 has been you mixed you a bit of a bounce back from a very weak fourth quarter 2018 so I mean it's all relative if the stats show it's been a great year but but longer term investors were know slightly different oh where... Read More

Key Insights

• 😘 Interest rates are expected to remain low in 2020, creating a supportive environment for growth stocks.
• 💥 The US tech boom is likely to continue due to its strong fundamentals, even though valuations may be a concern.
• 😘 Europe and Japan could benefit if the global economy reaccelerates, while the US remains favorable in a low-interest-rate environment.
• 🥺 The resolution of Brexit uncertainties could lead to a positive investment outlook for the UK.
• 🪛 Ethical investing, driven by the ESG theme, is becoming mainstream and is expected to influence investment decisions.

Questions & Answers

Q: In 2020, where should investors be putting their money based on the overall background?

Based on the expectation of low interest rates and ongoing quantitative easing, it is reasonable to invest in growth stocks. The supportive environment for growth stocks is likely to continue, especially in the US.

Q: How near are we to a recession, and what factors are contributing to this uncertainty?

The timing of recessions is difficult to pinpoint, but it has been five years since discussions about late-cycle began. The economy is expanding at a slower rate, but it is challenging to identify a substantial industry that could cause a recession. Currently, there is no obvious sign of an imminent recession.

Q: Can the US tech boom continue in 2020, considering the weak Q4 of 2018?

The US tech boom is expected to continue, especially in areas like semiconductors and the digital economy. While valuations may be criticized, the growth in these sectors is undeniable, and the tech boom is founded on good economic fundamentals.

Q: Which regions are likely to perform well in 2020, depending on the global economic situation?

If the global economy reaccelerates, regions more dependent on global trade, such as Europe and Japan, are likely to benefit. However, if the slowdown continues in an environment of low interest rates, the US, with its growth stocks and quality investments, is expected to be the clear beneficiary.

Summary & Key Takeaways

• 2020 is expected to be a year with low interest rates and ongoing quantitative easing, creating a supportive environment for growth stocks.

• The US tech boom is likely to continue, driven by good economic fundamentals, especially in areas such as semiconductors and the digital economy.

• Europe and Japan could benefit from a reaccelerating global economy if it continues to slow down, while the US remains favorable for growth stocks.

• The UK's investment prospects are dependent on the resolution of Brexit uncertainties, but once resolved, the country could experience a good 18 months of growth.