The outlook for equities, commodities & currency markets in 2020

As we step into the new year, the global market landscape presents a mix of opportunities and challenges for investors across equities, commodities, and currencies. I had the privilege to sit down with P.C. 17, a seasoned market analyst, to gain insights into the trends and expectations for South African markets in 2020. One of the key themes that emerged from our discussion was the impact of global factors such as the U.S.-China trade war and the upcoming U.S. presidential elections on market performance. P.C. 17 highlighted the need for stability, clarity, and direction in the markets, emphasizing the importance of monitoring key risks and trends on both a global and local level. In terms of equities, the S&P 500 index was a focal point of analysis. P.C. 17 noted that while the index had been overextended to the upside, a temporary correction was expected to maintain overall momentum. Looking ahead, he forecasted a potential gain for the S&P 500, with an eye on key support levels to watch. Shifting focus to commodities, the spotlight was on Palladium, a metal that had surprised many with its exponential growth. P.C. 17 expressed optimism about the continued momentum in Palladium, cautioning against labeling it as bubble territory and stressing the need to identify key levels for market shifts. Discussion then turned to other precious metals like gold and platinum, with P.C. 17 forecasting limited upside for gold and strong potential for platinum, which could bode well for South Africa. In the realm of currency markets, the analysis extended to Brent crude oil and its impact on the South African rand. P.C. 17 viewed Brent as a 'lesser currency specific commodity,' highlighting the symmetrical price patterns that could dictate future movements. With a calculated range for Brent prices, the focus shifted to the implications for the South African economy. Wrapping up the discussion, P.C. 17 offered investment insights, pointing towards potential opportunities in the local market despite challenges. He emphasized a focus on industrials, quality resources, and financials as key sectors to watch for potential growth in 2020, while also acknowledging potential headwinds from external uncertainties. Overall, the outlook for South African markets in 2020 appears to be a mix of cautious optimism and strategic planning, guided by a nuanced understanding of global trends and local dynamics.