Bloomberg analysts predict that in 2020, the era of U.S. asset performance is over, while Asian emerging markets, whether in bonds, stocks or exchange rates, will stand out.


Bloomberg analysts said market conditions this year will be familiar, including the end of an era of U.S. growth dominance even if trade relations with China improve slightly. The fed stabilises global bond yields with an asymmetric response; Fiscal stimulus is likely, particularly in Europe, but don't get your hopes up.


Some, such as prominent investor bill mobius, see limited impact on Asian stocks from rising tensions between the U.S. and Iran.


Analysts say emerging markets will shine as U.S. stocks gain less this year, despite the risks posed by tensions with Iran. But Mr Mobius remains bullish on Asia, where investors have become accustomed to such geopolitical risks; History suggests that the impact of rising tensions in the Middle East on the broader market is usually short-lived, said Michael haefal, global chief investment officer at ubs global wealth management.

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This year's us presidential election and the end of the era of us growth and independence will weaken the dollar, the report said. Factors such as inflows into bonds will keep the renminbi stable and boost overall emerging market currencies, with the Indian rupee and south Korean won expected to lead the appreciation. Note, however, that the Indian rupiah, the Indonesian rupiah and the Philippine peso have all been weak since 2012, when oil prices soared.


This year may not be as exciting as 2019, the report said. Treasury yields will rise only modestly, while emerging market yields will climb, particularly in China, India and Indonesia.


Analysts also expect U.S. value stocks to outperform growth stocks this year, while European stocks will do better because they are underpriced and value stocks outperform growth stocks.