The first year of the new decade begins with markets in a much more exuberant mood than at the beginning of 2019. Some of the world’s most important stock markets reached record highs in the last month of 2019 — but do investors feel that markets have peaked?
Uncertainty about the outcome of the Brexit negotiations has hit new highs, President Trump seems determined to scare the markets witless with his threats of escalating the trade war, debt problems in China are accelerating – the perfect background for a contrarian ‘buy’ signal.
It’s hard to find a more bullish start to a year than this one. There were “blockbuster” inflows of capital into stocks, as well as corporate and emerging markets bonds, according to the latest analysis by Bank of America Merrill Lynch.
Despite the stellar rise in the S&P 500 and the global selloff on Monday, US stocks are still the place to be for investors, as they are due to stage a year-end rally, according to analysts at Austrian bank Raiffeisen.
Eurozone equities have enjoyed a prolonged rally but the party isn’t over yet – at least in the opinion of strategists at Austria’s Raiffeisen bank.