FIS Group, a manager of U.S. and global developed, emerging and frontier market equity portfolio strategies, issued its Q1 2019 Market Outlook, which provides a review of a tumultuous market in 2018 and offers predictions for what is to come in the year ahead.
Crowded trade risks, while often unappreciated by investors, can be real and significant. They can be viewed as a byproduct of the immense proliferation of index and index-like products. While these products meet important investor needs, their predominance has led to market conditions that can greatly intensify selloffs-and could expose equity managers to greater than expected losses in the event of a market downturn.
Tina Byles Williams, CIO and CEO of FIS Group, has just published the latest Q1 2018 Market Outlook, which delves into predictions for the year ahead, from a more challenging environment for risk assets to geopolitical tensions on the horizon.
Growth accelerated in Q3, with inflation quiescent in most countries; perpetuating the “Goldilocks” conditions that have generally favored risk assets since early 2009. Global equity markets continued their gallop in Q3, with the MSCI ACWI and the S&P 500 reaching all-time highs.
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Global equities rally supported by strengthening macroeconomic data.
Frontier markets were mixed in 2016, with most of the Middle East and Africa lagging the rest of the universe and a few markets surging ahead 30-40% on the year.
