U.S. economic growth has slowed in 2019. Can investors hope for a rebound in 2020? Liz Ann Sonders of Schwab looks at the factors most likely to influence the markets next year. December 15th looms as a possible turning point in trade with China. Reuters reports on the negotiations as well as the Fed’s policy announcement that’s expected later today. Jeffrey Gundlach has lowered his odds of a recession in 2020. But he’s still warning investors to steer clear of corporate debt. John Gittelsohn and Luke Kawa of Bloomberg explain what’s behind the caution.
2020 Market Outlook: U.S. Stocks And Economy — The U.S. economy likely will remain bifurcated in early 2020. Manufacturing and business investment may continue to struggle amid trade uncertainty, but services activity and consumer spending may continue to be healthy. Liz Ann Sonders of Schwab offers a forecast. Read more…
Wall Street Slips As Tariff Deadline Closes In — Wall Street’s main stock indexes ended slightly lower on Tuesday, though not far from record highs, as investors awaited concrete news on whether a new round of U.S. tariffs on Chinese goods would take effect on Dec. 15. The date marks a potential turning point in a trade dispute between the world’s two largest economies that has convulsed markets. Read more…
Gundlach Lowers Recession Risk Odds, Warns on Credit Market — Jeffrey Gundlach said the odds of a recession have fallen and warned investors to steer clear of corporate debt because of rising risks of a weak dollar. There’s a 35% chance of a recession by the end of next year, the bond manager said Tuesday. In September, he predicted 75%. “We’re clearly at a lower level now,” Gundlach said in a webcast about the DoubleLine Total Return Bond Fund. Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller
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