Goldman sees 'baby bear' market for bonds in 2020 in a year of risks

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Goldman Sachs sees a 'baby bear' market in bonds in 2020, with a moderate move up in yield, but a decent year for risky assets like stocks.

Goldman Sachs says markets in 2020 will need to "learn to fly on their own" without help from central bank easing.

In a sweeping outlook for 2020, the firm's strategists say they do not expect a "go-go global growth environment that would sink the Dollar or result in a major bear market for bonds." Risk assets, such as stocks, should see "decent returns." "We expect moderately better economic and earnings growth, and therefore decent risky asset returns" across regions, they wrote.

The strategists do not expect Chinese policymakers to provide a big stimulus to their economy, but they instead will try to stop the deceleration. For Europe, the analysts have low confidence for much of a rebound. "Directionally, we think the UK offers the most attractive shorts in G10, given a likely rebound in activity and resolution to the Brexit impasse after the [U.K.] election, plus the prospect for more expansionary fiscal policy," they said.Investors will also focus on the U.S. election, which carries its own risks. "Barring a unified government led by Democrats, US tax policy would likely remain unchanged at least through 2023.

 

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baby bear market? you guys are idiots

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