Press release
T. Rowe Price Investment Professionals Share Global Market Outlook For 2020
BALTIMORE, Nov. 19, 2019 /PRNewswire/ -- NEWS T. Rowe Price held its annual Global Market Outlook press briefing today in New York City, during which several
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"BALTIMORE, Nov. 19, 2019 /PRNewswire/ -- \nNEWS\nT. Rowe Price held its annual Global Market Outlook press briefing today in New York City, during which several of the firm's experts reflected on key market drivers in 2019 and shared their expectations for various asset classes in 2020. Speakers included Alan Levenson, chief U.S. economist; John Linehan, portfolio manager and chief investment officer, Equity; Justin Thomson, portfolio manager and chief investment officer, Equity; Mark Vaselkiv, portfolio manager and chief investment officer, Fixed Income; and David Giroux, portfolio manager, chief investment officer, Equity and Multi-Asset, and head of Investment Strategy.\nKEY OUTLOOK OBSERVATIONS\nGlobal Economy\nAlthough growth has slowed, the U.S. economy is in a late-stage expansion, a scenario that can potentially last for a long time. Globally, a near-term economic pickup is on the horizon as global trade concerns ease and manufacturing economies stabilize. The U.S. and China, two of the world's dominant economies, are expected to slow further even if a trade truce holds. Inflation is broadly low around the world relative to central bank targets, though pockets of wage pressure are emerging. For 2020, the upside for global growth is limited, with risks skewed to the downside. U.S. Equity\nThe slowing economic environment and concerns around the ongoing China tariff war this year led to high demand for safety. Investors were therefore attracted to lower-beta companies with high valuations for much of the year. However, that trend began to reverse in early September this year, with investors rotating back to high-beta, more cyclically oriented stocks amid easing monetary policy and optimism for a new trade agreement between the world's largest economies. Despite the market reaching new highs, investors are grappling with elevated risks. Geopolitical uncertainty has increased, and not only because of the tariff war. Brexit, discord in the Middle East, unrest in Hong Kong, and the impending U.S. presidential election are among many factors contributing to elevated geopolitical concerns for the market to digest. While the S&P 500 gained 449% from its trough in March 2009 through September 30, 2019, there is little sign that company valuations have become extended. With some exceptions, such as defensive parts of the market...