Investment Outlook Q1/2020
Safe haven and risk assets alike have pushed higher so far this year, the last one of this decade. An investor couldn’t had wished for more during the upcoming Holidays! However, arbitrary performance measures such as calendar years mask the unpleasant events of previous years. Although the global equity rally this year looks impressive with a close to 23% return, it has only marginally trounced the previous peak recorded in late January of last year. The annualized return since then has been slightly below 2%, or a meager total return of 3.5%. That is identical to the return of global bonds over the same timeframe. Considering the relative higher risk associated with equities, the risk adjusted return has been undisputedly dismal during this period.