Seeking Growth in a Softer Economy

2019 Midyear Insights

By Brent Puff - July 16, 2019

US stocks posted their best first half of a year in more than two decades. Yet as our investment team looks out over the rest of 2019 and into 2020, we believe it will be more difficult for markets to continue making big moves higher.

Growth around the world is under pressure in both developed and developing economies. This more modest pace of global economic activity is in turn slowing the pace of corporate profits. Moreover, the trade dispute between the US and China remains unresolved and is likely to continue to pressure business confidence, investment and ultimately future global economic activity.

Although the shift to greater monetary policy accommodation by the US Federal Reserve and other leading central banks around the world should help counter some of the headwinds derived from slower global growth, we believe the growth environment will remain challenging, particularly if the trade dispute persists.

In my latest video, I share our approach in this environment and examples of businesses we’ve identified with growth drivers relatively insulated from the macro headwinds.

Transcript

Insights from our CIOs

Get additional insights in our latest Investment Outlook.

Discover More
  • Related Articles
  • More From Author

Six Reasons Investors Should Consider U.S. Value Stocks

Learn why we believe high-quality, dividend-paying U.S. companies may offer solid risk/reward potential.

Sustainable Investing in Emerging Markets

There’s a lot of talk about ESG investing. However, few managers have focused on emerging markets—and that’s where we see a lot of potential.

Opportunities in China Amid the Trade War

Trade war aside, Sr. Portfolio Manager Patricia Ribeiro is still finding opportunities to invest in China. Find out how in her latest quarterly update.

    Slower Growth and Market Returns in 2019

    Market expectations are low coming out of 2018. Sr. Portfolio Manager Brent Puff explains the potential implications for global growth markets in 2019.

    Seeking Growth in a Softer Economy

    Economic activity around the world is softening, which Sr. Portfolio Manager Brent Puff believes could make finding future growth more challenging.

    Global Economic Risks: Are They Diminishing?

    Despite the first quarter market rally, Global & Non-U.S. Equity Portfolio Manager Brent Puff notes slowing global growth. What’s that mean? The pace of corporate profits is under pressure, which means a more difficult backdrop for equities.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      FOR INSTITUTIONAL USE ONLY | NOT FOR PUBLIC USE