Rabobank analysts suggest that global investors are currently facing a long list of worrying fundamental factors including trade tensions & slowing world growth.

Key Quotes

“On the horizon there is potentially a longer list of additional woes including the possibility of a US recession in 2020, populism and polarisation of political attitudes in several counties, rising suspicions between the West and China and the West and Russia, and debt and demographics.”

“There would appear more than enough strife to trigger a move back into safe haven assets.”

“By contrast, stock markets have had a good start to 2019, with Nasdaq boasting gains of 12.6% year to date.”

“A significant source of this apparently relaxed outlook is the view that central banks will again paper over the risks by ensuring access to cheap money. This attitude questions our view that the safe haven JPY will end the year at stronger levels.”