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Video: Global small-cap 2019 outlook

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The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.

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      By Aidan Farrell, Director of Global Small Cap Equity, Eaton Vance Advisers International Ltd.

      London - I think 2019 will be a year of challenges and uncertainty that can create opportunities for global small-cap investors.

      A lot of the challenges are political, such as trade wars, Brexit and the U.S. government shutdown. We are also going into the 10th year of the recovery, so investors are sensitive to any signs of economic weakness.

      One of the things I'm watching is that analyst profit forecasts seem a bit ambitious, considering that economic momentum is slowing a bit, albeit from a high level. We still have a very robust global economy although it isn't as strong as early 2018.

      (Tap or click the image below to view the video.)

      Blog Image Farrell Outlook Jan 17

      That said, the stock market seems to have recently discounted that with the weakness in late 2018. And we could get positive surprises on issues such as trade talks between the U.S. and China, and the Federal Reserve signaling the end of its rate-hike cycle. I think if those things and others come together in 2019, it could be a good year for global equity investing.