This year’s most significant monetary policy developments are unlikely to be policy rate changes; instead, many central bankers will assess the tools they have – or need to craft – to manage muted growth and elusive inflation.
While hard currency debt should offer good income potential, higher defaults and valuations could limit capital appreciation. Local EMD should benefit from currency gains and local yields remaining lower for longer.
The US job market is having a bumper run, signalling that more and more people are in work. However, take closer look and not all is well: job quality has worsened, living wages are an issue. We consider the implications.
Also read out investment outlook for 2020: “Hotel California: No leaving QE”
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