2020 promises to be a year full of crosscurrents, “head fakes” and overall volatility. While the underlying backdrop of low interest rates, subdued inflation, and modest economic growth is still supportive of gains, stretched stock valuations have left the equity markets with very little margin for error.
Throw in a divisive election, messy Brexit, and now the fallout from a virus epidemic, and it should be quite a ride. Chase and Simon discuss the landscape and how opportunities for growth are still present, but more diversification away from what has worked so well the past few years may be necessary.
Past performance is not indicative of future results and diversification does not ensure a profit or protect against loss. All investments carry some level of risk, including loss of principal.