Global markets have started 2019 on firmer footing after losses in 2018. We see equities and bonds eking out positive returns this year, and still advocate a carefully balanced approach in portfolios due to late-cycle concerns and ongoing geopolitical uncertainties. We caution against chasing the rally in risk assets, particularly in areas vulnerable to growth downgrades, geopolitical risks or sudden shifts in supply/demand dynamics.
Chart of the week
Market pricing of 2019 U.S. interest rate moves, 2018-2019
There is no guarantee that any forecasts made will come to pass.
Source: BlackRock Investment Institute with data