Carmignac's Saint-Georges: What can we expect from financial markets in 2020?

On cusp of 'radically new chapter'

Now that the worst-case scenarios for negotiations between China and the US – as well as between the United Kingdom and the European Union – are off the table (and let us hope they stay there), equity indices can at last shake off the headwinds that have been holding them back since late April.

The major return to stimulus engineered, however belatedly, by central banks - after a botched attempt at removing it in 2018 - has given financial markets the fuel they need to end this year with gusto and get over the nightmarish visions previously haunting them. The key question regarding this "happy days are here again" mood is whether 2020 is shaping up to be a fruitful year, now that investors will no longer have to deal with monetary policy tightening or the threat that trade talks might escalate.  The scenario currently gaining the most traction is that the world economy will ...