Investment Outlook


Trade tariffs, Brexit and uncertain monetary policies on both sides of the Atlantic. Keep Calm and Carry On?


US trade policies may permanently affect the Chinese production industry. Meanwhile, markets shrug off disappointing macroeconomic indicators as central banks loosen policies. And contrary to economic theory, making a profit doesn't seem to be a pre-requisite for corporate success these days.


In our last investment outlooks, above all, we stressed the development of politically created uncertainties. It seems that these uncertainties have now started to have an effect on the real economy. Macroeconomic statistics still confirm expected growth in developed regions for 2019, but growth expectations have been revised downward over the past quarter. This has caused a sharp correction in the global equity markets of around 12% and has had a negative impact on corporate bonds. There are several examples of these politically induced risks. These are the two most noteworthy.