14 June 2019
June 2019 Financial and economic outlook.
How many hits can the economic expansion still take?
The US-led trade war has increased the risk of a strong slowdown for the US economy and is already having a strong impact on global trade and earnings growth prospects. Central banks are set to react, also in Europe where several political risks weigh on the economy. For the investor, it is not certain that the prospect of rate cuts should lead to a renewed search for yield. On the contrary, it is time for more defensive portfolios.
Watch the analysis of Peter Vanden Houte, Chief Economist ING Belgium, and Steven Vandepitte, Investment Office ING Belgium.
What should you remember?
- Interest rates are likely to decrease further, without easing all fears about growth.
- Government bonds should still benefit from the phenomenon.
- Market conditions and (geo)political instability argue for more defensive portfolios.