October 9, 2019
BNY Mellon’s Pershing issues the Lockwood Investment Insights for the fourth quarter, says geopolitics will test investors’ resolve
JERSEY CITY, N.J. — Capital markets appear highly dependent on a large set of binary outcomes that may have more to do with political negotiations than changes in market dynamics, according to the latest Lockwood Investment Insights commentary.
“Markets have remained resilient through the third quarter, but negotiations over the United Kingdom’s planned exit from the European Union, protests in Hong Kong as well as U.S. and China trade talks and impeachment proceedings, among other developments, will test investors’ resolve in the coming months,” said Matthew Forester, chief investment officer of Lockwood at BNY Mellon’s Pershing and author of the report.
The capital markets outlook has not materially changed since last quarter as bond markets have continued to signal significant and renewed concerns about economic growth and monetary policy and investors worry whether cyclical pressures will grow more quickly than expected.
“Uncertainty can suppress market activity as investors wait for resolution before acting, but while we worry about these geopolitical events, better-than-expected outcomes or even simple clarity can have healthy results for markets,” Forester said.
Some highlights from the report include:
For more information on these trends, please visit www.pershing.com to view the full report and relevant disclosures.
This material is intended for informational purposes only and does not constitute investment advice or an offer or solicitation to purchase, hold or sell any securities. The opinions expressed by Lockwood are as of October 2019, and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Lockwood to be reliable, but are not necessarily all inclusive. This material may contain forward-looking information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.