If we had to describe the fixed income market in 2019 with a single word, we would choose “complacent.” While leverage remained elevated among both non-investment grade and investment grade issuers, particularly given the age of the credit cycle, yield spreads were on the tighter end of the spectrum and absolute yields ended the year below where they had been in 2007.
The gold price continued to climb in the third quarter of 2019, reaching a six-year high of $1,552/oz. in early September, as macroeconomic and geopolitical uncertainty continued to support the appeal of perceived safe-haven assets like gold.
Renewed easing by central banks worldwide was the defining move in financial markets during 2019, instigating a robust rally that left a number of major equity indexes at or near all-time highs by
Watch Matt McLennan alongside Evercore ISI's Ed Hyman as they discuss what has changed in financial markets over the last year and what that means for the US and Global economies.
Equity markets have overcome their end-cycle anxiety to deliver impressive gains thus far in 2019. Given the magnitude of returns across stock markets globally, it is perhaps not surprising to see widespread reports of FOMO among investors.