Zurich, 20 November 2019 – Stark political choices make the 2020 outlook more difficult to predict, but innovation driven by technology and sustainability will present new winners and losers over the decade ahead, according to UBS Global Wealth Management (GWM)’s new Year Ahead outlook.

UBS GWM’s core recommendations for the year are:

Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said: “Elections, trade tensions and a shifting monetary and fiscal policy mix are likely to define a ‘year of choices’ in 2020. However, investors should also look beyond the next 12 months to a ‘decade of transformation’ where new winners and losers could change how investors allocate capital”.

Over the 2020s, investors will also face a world transformed. Some 790 million people will move to cities. Workforces will shrink by 25 million in the developed world and grow by 470 million in the emerging world. The number of internet users will rise from 4.3 billion to 7.5 billion.

Sustainability and technology challenges related to these and other factors present opportunities, according to the report. Overall, the top longer-term investment themes highlighted in the Year Ahead report are digital transformation, genetic therapies, and water scarcity.

In UBS GWM's base case, the global economy will grow 3% in 2020, down slightly from 3.1% in 2019, according to the report. Developed market growth will decelerate from 1.6% to 1.1%, while emerging market growth will accelerate from 4.2% to 4.6%. However, two-way uncertainty is high, driven by choices in geopolitics and policymaking, as well as at the ballot box.