How we’re managing our clients’ portfolios
2020 is getting off to a better start than originally anticipated—nearly every asset class ended 2019 with positive returns. Central bank rate cuts, trade war de-escalation, and tentative green shoots in global manufacturing have spurred risk-on sentiment in the markets, suggesting a “mini-cycle” recovery through the first half of 2020. Our investment strategists’ Business Cycle Indicator (BCI) forecast pushes broad recession risks into late 2021, extending the aging economic cycle and giving equity markets modest upside potential this year.
Here is how we are managing these shifting market forces in our clients’ portfolios, using our cycle, valuation, and sentiment (CVS) investment decision-making process.