Outlook 2020 Fiscal policy: a game changer for markets in 2020?

Meanwhile, the flames of social unrest are flaring up across the world, fanned by growing wealth inequality and ongoing climate uncertainty. The resulting decrease in investor risk appetite has pushed developed market government bond yields into negative territory, with central banks’ control over inflation expectations having diminished. More recently, investor appetite has improved due to a reduction in political risks and some data stabilization. The evolution of markets in 2019 underscores how difficult it is for them to find a solid anchor in an uncertain world.