Surprise 1: Trade war truce
Opportunity: Equities, especially emerging market equities
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
Surprise 2: Climate disaster
Opportunity: Carbon footprint related sustainable investment strategies
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.
Surprise 3: War in the Middle East
Opportunity: Upstream energy and oil service stocks or alternative energy
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.
Surprise 4: Surprise in US election
Opportunity: Underweight US stocks
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
Surprise 5: Stimulus in Eurozone
Opportunity: European equities
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
Perspectives matter. Tune in to our insights.