Market Projections | February 19, 2020

2020 Investment Outlook: The Nice House in the Forest

For most investors, the last decade was like a nice walk along a wooded and scenic trail that ended with double-digit equity returns for 2019. Those results, which were unexpectedly robust for holders of U.S. equity, were supported by four strong pillars: continued global economic growth, accommodative monetary policy, substantial share buyback activity and a booming technology sector. Now, as we enter the new decade, most of those features appear to still be in place. However, numerous challenges still exist in the investment landscape, and investors would do well to stay vigilant.

Segal Marco's 2020 Investment Outlook helps you put recent market developments in perspective. Learn more about our global macroeconomic views and near-term performance expectations for specific asset classes.

Over the next 12 to 18 months, we expect*:

  • U.S. and developed non-U.S. equity to perform in-line with our long-term assumptions.
  • Emerging market equity to deliver returns that are slightly above normal.
  • Normal returns for U.S. core fixed income and other areas of the U.S. bond market.
  • Below normal results for non-U.S. core bonds.
  • Opportunities for emerging market debt to perform slightly better than normal.
  • Above-normal returns for energy, but below-normal for timber and private equity.

*The views represented for each of the asset classes are relative to our 10-year capital market assumptions.

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Segal Marco Advisors provides consulting advice on asset allocation, investment strategy, manager searches, performance measurement and related issues. The information and opinions herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Segal Marco Advisors’ R2 Blog and the data and analysis herein is intended for general education only and not as investment advice. It is not intended for use as a basis for investment decisions, nor should it be construed as advice designed to meet the needs of any particular investor. Please contact Segal Marco Advisors or another qualified investment professional for advice regarding the evaluation of any specific information, opinion, advice, or other content. Of course, on all matters involving legal interpretations and regulatory issues, investors should consult legal counsel.

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