Investment Officer Luxembourg

Equity markets are starting 2020 on an optimistic note. Investors are celebrating the preliminary US-China trade deal and equities are trading at record highs. Investment Officer asked three prominent investors  representing global asset managers for their views. Today, we ask Stefan Kreuzkamp, CIO of DWS.

2020 will probably not be a great year for bonds. The low interest rates could even precipitate a shock to the financial system eventually. The outlook for equities is somewhat more promising, even though it’s difficult to grow earnings in the current low-growth environment, says Chris Iggo, CIO of AXA IM, in the second part of our 2020 outlook series. 

The world economy is showing signs of recovery. Over the fourth quarter, investors have anticipated a more stable macro environment by driving up equity market valuations. The ‘very large Phase One Deal’ that was announced by President Trump on Twitter earlier this month may not be as comprehensive as suggested. But markets have given Trump the benefit of doubt and have continued to move up.

The value factor has been disappointing investors for years. However, combining value with quality turns underperformance into stable outperformance, according to French boutique asset manager Seeyond AM. Seeyond has called the ‘new’ factor smart value.

A cross-industry working group in Luxembourg is seeking new ways to enable financial technology to thrive in Europe’s tough regulatory environment. Updating the country’s financial services outsourcing rules could help unlock the potential of open banking.