What's in store for global markets in 2020?

Welcome to Invesco's 2020 Outlooks

As we look ahead to 2020, Invesco's experts come together to focus on what can be expected in the new year. Cutting across economic, political, regional and asset class-specific themes, we offer a global and all-rounded view of where the risks and opportunities may lie in the year ahead.

Read on for our 2020 outlooks.

Global markets and economic outlook

A major theme for 2020 is that uncertainty will continue to disrupt policymaking processes across different economies.

With on-the-ground research by our strategists in New York, London, Hong Kong and Tokyo, Invesco's Global Market Strategy office forecasts global economic growth of approximately 3% for the globe. Given that we expect continued monetary policy accommodation with little fiscal stimulus, we are more optimistic about capital markets than we are about economic growth.

Chief Economist John Greenwood also shares his analysis for each major economy, stressing that unresolved issues are expected to prolong uncertainty across the globe.

Regional Outlooks
Asset class outlooks
Global economic outlook

Asian Equities

Our equity investment teams based in Hong Kong and Japan analyze developments across the region and expect that the asset class should see brighter prospects in 2020.

Chief Investment Officer Mike Shiao thinks that Asia ex-Japan equities could get a lift from pro-growth policies across the region. Favourable election results across Asia that were seen in 2019 should pave the way for pro-growth policies in India, Indonesia and Thailand. Trade tensions should benefit lower value-added production outside China, with improving domestic business environment a policy focus. In China, despite slower macro growth, companies that can capture the structural demand should deliver strong growth.

In Japan, Daiji Ozawa thinks that investors have restored confidence and are expecting a turnaround in an earnings cycles. Looking forward to 2020, he thinks that long-term structural perspectives, namely unfaltering corporate governance reform, should also support Japanese equities on a sustainable basis.

Asia ex-Japan equities
Chinese equities
Japanese equities

Fixed income

Invesco Fixed Income thinks that 2020 should be encouraging for investment-grade and high-yield bonds. Turning to China, we see that Chinese growth has shown signs of bottoming, and believe the credit metrics of Chinese issuers will remain largely resilient and corporate default risk will remain low.

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Real estate

Invesco Real Estate thinks that the outlook for global real estate in 2020 is positive, but the macro risks are elevated. Economic growth has moderated in 2019 but remains adequate to support real estate demand. We think that “structural offense”, or taking advantage of long-term drivers of real estate demand, should be balanced with “cyclical defense” should one or more macro risk materialize.

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Important information

The opinions referenced above are as of November, 2019.

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