The year is ending on a particularly volatile and uncertain note. Few assets managed to provide a positive absolute return in 2018, as investors fluctuated from worrying about an overly restrictive Fed and higher bond yields, to worrying about increased corporate financing strains and a possible recession next year.
Our latest research has focused on the outlook for all the major asset classes for next year. The good news is that we foresee a number of positive long opportunities in select risk asset markets, particularly outside the U.S. The bad news is that the bond bear market is not over, and political developments still hold the potential to undermine business sentiment.