Back to Reality: Emirates NBD announces investment outlook for 2020

Emirates NBD, one of the leading banks in the region, has launched its international investment outlook for 2020.

Themed, Back to Reality, the 2020 outlook was revealed to media by Maurice Gravier, Chief Investment Officer, Emirates NBD Group.
Speaking at the media briefing, Gravier commented: After a wonderful 2019, propelled by economic easing meeting excessive pessimism, we anticipate markets to come back to the reality of fundamentals.

The world economic backdrop is resilient, with growth predicted to be close to that of previous year, while inflation stays subdued, Gravier said. The results of previous years rate cuts will be felt, helping customer spending, supporting manage the considerable amounts of debt in the system, and offering oxygen to other central banks particularly in rising economies.

On the flip side however, valuations are too elevated, particularly in developed markets, to anticipate any further expansion, he noted. In terms of positioning among the international investors community, the excessive pessimism of previous year has been replaced by a tepid neutrality, which is less beneficial for markets.

To put it short: the indispensable situation is benign but it is completely priced-in, which limits upside potential, and creates vulnerabilities to any poor surprise, Gravier concluded at the briefing, including that Emirates NBD expects its allocations to deliver single digit performances in 2020, shut to their long-term expected returns and to the nominal international GDP growth.

The annual Emirates NBD CIO Outlook is an advisory blueprint covering investment opportunities and key international monetary indicators and in-depth financial market insights, based on which Emirates NBDs group of advisors, strategists and analysts make suggestions on monetary transactions and investments to the banks qualified clients.