NEWS & MEDIA

Our stock picks for 2020 report

4 January 2020

Our stock picks for 2020

Due to the popularity and success of our 2019 report, we have written a “Top Stock Picks for 2020” report. You can can download the full report here.

 

Below is a preview of the 2020 report:

Key events in the year ahead and potential risks

SLOWING GROWTH IN CHINA & EUROPE

The past year has been a difficult one in global manufacturing and trade as there has been a significant slowdown. The ongoing concerns about the US-China trade deal have not helped matters and certainly contributed to the drop. There has been a domestic slowdown in China as households become more cautious and German auto sales have added further concerns. There is a high level of uncertainty across the globe and that may continue to keep growth subdued.

BREXIT DRAG?

Brexit still appears to be no closer to a resolution. October’s “Brexit bounce” gave a taste of what might happen should sentiment improve. A Conservative majority would lead to worries about the length of the transition period, while a hung parliament raises the prospect of a second referendum and prolonging the uncertainty. One thing is for certain and that is there is no immediate end in sight to Brexit.

TRADE WAR UNCERTAINTY

Tensions between the US and China appear to have eased in recent weeks as both side work to finalise a limited agreement. However, the markets still face continued uncertainty surrounding this issue. President Trump cast doubts recently by not agreeing to roll back tariffs on China, which dampened hopes of a resolution. The Trump administration slapped tariffs on more than $500 billion in Chinese goods, while Beijing has put duties on about $110 billion in American products. China has pushed for the U.S. to remove tariffs as part of the “phase one” deal. A conclusion is yet to be reached.

2020 US PRESIDENTIAL ELECTIONS

President Trump is on the campaign trail for re-election. His tenure has been littered with controversy, but he is still the favourite for re-election. A handful of billionaire investors are spending a lot of time fretting about the 2020 presidential contest, particularly the rising prospects of Democratic candidate Elizabeth Warren. But Paul Tudor Jones warned in a CNBC interview that the stock market is certain to fall if any Democrat wins the 2020 race, and that’s because it all comes down to taxes. Trump has been great for investors in the US but this creates the potential for inequalities between the rich and the poor.

2020 Stock Picks

Uncertainties aside, in this report we have highlighted stocks that we believe offer excellent value and potentially fantastic rewards for investors in 2020.

c.