The Schwab Center for Financial Research recently published their 2020 Market Outlook. Reports like these and a wide range of others are examples of the analysis and commentary that our team considers on an ongoing basis. Although nobody can predict the future, we believe that staying knowledgeable about current economic trends is central when making investment decisions for the long term.
The key points from the Schwab 2020 Market Outlook are as follows:
- The U.S. economy likely will remain split in early 2020, with manufacturing and business investment still struggling amid trade uncertainty, but services activity and consumer spending healthy.
- A resolution of the U.S.-China trade war could reverse business uncertainty and unleash investment. However, a global recession could occur if the manufacturing slowdown spreads to jobs and consumers.
- Ten-year Treasury bond yields should move higher in 2020, assuming recession fears continue to decline. Barring a setback on trade, 10-year yields could rise to the 2.25% to 2.5% area. The 10-year Treasury bond yield is a key benchmark interest rate, which corresponds to how yields change across other types of bonds.
To read the full 2020 Schwab Market Outlook, please see this link. The main page of the report contains links to three sections: U.S. Stocks and Economy, Global Stocks, and Fixed Income.
What does all of this mean for you and me as individual savers and investors? Schwab reminds us in their market outlook that “Having a financial plan and an appropriately diversified portfolio are two key first steps for weathering any market environment. Note that this is just a one-year outlook, and investors should keep their investing time horizon in mind before reacting to any forecasts.”
Our team looks forward to welcoming 2020 – whatever the economic winds might bring – because we look forward to helping you navigate the markets within the more important context of your unique financial goals.