The investment landscape in 2000

Author: David Roche

   




Synchronized world growth is upon us. Inflation will rise, real interest rates will move up above their long-run average and global liquidity conditions will deteriorate. That’s bad for long-term financial assets.

After a decade of outperformance, the US equity market will struggle to keep pace with Europe and Japan. But US treasuries will do better this year than last, particularly if the US equity market corrects (as I expect).

The euro will eclipse the US dollar as the strongest major currency as growth accelerates in the eurozone.

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