Quarterly Market Environment Report

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Mercer's market environment report provides a detailed review of the capital market environment and trends on a wide range of assets classes.

2019 was a great year for stocks and bonds

 

The January  2020 edition covers the following discussions:

Performance

  • 2019 was a great year for stocks and bonds              
  • Quality outperformed value and momentum in 2019            
  • A decade in review
  • Performance trends since 2000

Macro Environment

  • The Fed likely on hold for 2020        
  • Global growth showing signs of stabilization             
  • US economic growth likely to decelerate further in 2020     
  • Chinese should benefit from trade deal and stimulus            
  • The dollar is looking more vulnerable                          

Financial Markets

  • Equity markets surged as downside risks receded  
  • US equities: decelerating growth and rising wages to weigh on earnings     
  • International equities should benefit from better growth outlook   
  • Trade deal reduced downside risks for EM equities
  • Local EMD offers attractive yields and currency upside        
  • Valuations for growth stocks have run         
  • Yield curve steepens on optimism for 2020 
  • Tight high yield spreads provide limited compensation
  • Hedge Funds: strong finish to 2019
  • LDI: maintain tactical underhedge 
  • Factor and manager universe performance
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