2020 outlook: Expecting the unexpected

What are the investment implications if unexpected events occur in 2020 and how should investors consider responding?

The global economy is slowing while the list of potential market surprises grows. We look at the opportunities this could create for investors in 2020.

In this edition of Panorama, our senior asset class and allocation experts assess the potential challenges and opportunities investors may face in 2020.

Unexpected event: Trade war truce

A comprehensive trade deal agreement between the US and China may reignite the global manufacturing cycle.

A trade agreement could potentially boost equities, particularly in emerging markets.

Unexpected event: Climate catastrophe

A mega-storm hits a major metropolitan area, a glacier collapse disrupts EU business, regional droughts threaten the food supply.

Investors can be part of the solution through sustainable investment strategies that engage with companies to help them reduce their carbon footprint.

Unexpected event: Middle East war

If tensions escalate to war between Saudi Arabia and Iran, oil facilities in the Gulf region could be devastated.

This scenario could force a realization that autonomy and electrification of the vehicle fleet is further away than thought, and could boost upstream energy and oil services stocks and/or alternative energy.

Unexpected event: US election surprise

US election results could set the stage for sweeping changes in US economic policy and domestic regulation.

Many investors may consider underweighting US stocks vs. the rest of the world.

Unexpected event: EU Stimulus

Germany agrees to engage in fiscal stimulus to offset the waning benefits of monetary policy.

A major stimulus program could help to ignite value within European equities vs. European sovereign debt.