Building up capital

3 December 2018

What's new in the financial markets?

Thierry Masset

Chief Investment Officer ING Belgium

Thierry Masset, Chief Investment Officer reviews the economic and financial news. Every month, he analyses events that have impacted the financial markets. The context of any potential stock market fluctuations is equally scrutinized. You can find this market analysis and ING's investment strategy by consulting our "Monthly Market Review".

So what are the key points this month?
  • There is still some trading day left in 2018, but already this year is the worst for global equity markets since 2011 (-6.6%), with the MSCI All Country World index losing about 1% in euro.
  • Markets are ignoring what is likely to be the biggest year for U.S. profit growth this decade and turning their focus to the first signs of an impact in the corporate outlook from the raging trade war, a slower global activity and higher interest rates.
  • In a typical late cycle, characteristics that distinguish resilient equity portfolios include defensive and value-style investing.

“The protectionist rhetoric is a shock of uncertainty that has also begun to spread to companies which may be experiencing a peak earnings growth. The bottom lines of corporations in the S&P 500 are expected to rise 23.5% this year. But much of that seems to be a one-time boost, and not the sustained higher growth that Trump and his advisers promised from low tax rates. Analysts are now expecting 2019 earnings growth to slow to 10.1%, virtually the same growth they were predicting back in June 2017, six months before the passage of the tax cut.”

Read the full "Monthly Market Review" .

Want to know more?
Discover our previous issues :
Date Title Link

October 2018

It is not « La Dolce Vita » on the financial markets

September 2018

Volatility is set for a comeback

August 2018

Equity markets

July 2018

A disastrous G7 summit

June 2018

Cycle is maturing but not ending

May 2018

Markets struggle on geopolitics

April 2018

9-year-old bull market is not dead

March 2018

Earnings boom means equity optimism makes senses

February 2018

A "gradual approach" to raising interest rates

January 2018

Resynchronization of global growth