This market is a better bet than U.S. stocks in 2020, Barclays says

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If you're looking for a safer bet than U.S. stocks heading into an election year... here's where Barclays says you should go.

It may be a typically subdued day for stocks post-Thanksgiving, but escalating tensions between the U.S. and China over President Donald Trump’s support for Hong Kong have concerned investors.

With geopolitical risks mounting, Barclays, in our call of the day, expressed a “tactical preference” for European stocks over U.S. equities in 2020. Barclays forecasted a similar mid-single digit price upside for U.S. and European equities, but said the balance of risks favoured the latter. Emmanuel Cau, European equity strategist at Barclays, cited European stocks’ higher exposure to emerging markets and cheaper valuations. He added that while Barclays is overweight on U.S.

He added: “U.S. equities have tended to perform well in the fourth years of presidential terms, but this time around, the Trump impeachment hearings could affect investor confidence given the possible impacts on the outcome of the next election,” citing concerns over the potential impacts of Senator Elizabeth Warren’s policies.

The U.K.’s Court of Appeal has upheld an injunction preventing Royal Mail RMG, -4.23% employees from going on strike in the peak holiday delivery season.

 

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Barclays shifts faith from US to European stocks for 2020Barclays has rebalanced its equity focus away from the U.S. and toward Europe and emerging markets for 2020.
Source: CNBC - 🏆 12. / 72 Read more »