What a year 2019 was! On the stock market, remember that in December 2018, almost all asset classes posted negative returns. In 2019, the effect was just the opposite. This tailwind, which propelled the vast majority of asset classes, was mainly due to the central banks, which injected a lot of liquidity into the markets by cutting their policy rates.
Although the economic cycle continues and 2020 may be politically eventful, we remain optimistic about the economic outlook for the stock markets. However, with such expensive valuation levels in the United States, it can be interesting to turn over to overseas markets, such as Europe and/or emerging markets. This month we are lucky to welcome our bond portfolio manager, Louis Gagnon, to talk to us about the outlook for the bond markets in 2020.