{"id":604673,"date":"2018-12-10T04:19:56","date_gmt":"2018-12-10T04:19:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/12\/10\/2019-looks-good-for-egypt-but-expect-the-us-economy-to-slow-down-and-a-bear-market-for-american-equities\/"},"modified":"2018-12-10T04:19:56","modified_gmt":"2018-12-10T04:19:56","slug":"2019-looks-good-for-egypt-but-expect-the-us-economy-to-slow-down-and-a-bear-market-for-american-equities","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/12\/10\/2019-looks-good-for-egypt-but-expect-the-us-economy-to-slow-down-and-a-bear-market-for-american-equities\/","title":{"rendered":"2019 looks good for Egypt, but expect the US economy to slow down and a bear market for American equities"},"content":{"rendered":"

<\/a> 2019 looks reasonable for Egypt, less so for other emerging markets -EFG:<\/b> EFG Hermes\u2019 2019 yearbook suggests that a \u201csustained recovery\u201d in emerging markets is unlikely until the US Federal Reserve ends monetary tightening. The Fed is expected to continue hiking up rates until mid-2019, says the report, which predicts that \u201cEM currencies could move lower from here.\u201d<\/p>\n

Look at Egypt, Nigeria, Kuwait and Saudi next year: <\/b>Egypt and Nigeria are inexpensive markets with room to cut interest rates in 2019, while KSA and Kuwait will benefit from index inflows. Egypt remains undervalued even following the correction from April\u2019s high<\/b>, EFG Hermes\u2019 research teams says, and rate cuts could spur a rally.<\/p>\n

What shares is EFG tipping? <\/b>Juhayna in Egypt as a proxy for a consumer recovery as well as Saudi\u2019s Al Rajhi Bank and Kuwait\u2019s Gulf Bank.<\/p>\n

Further afield: The IMF\u2019s chief economist thinks the US economy is going to slow down<\/b>, the Financial Times reports<\/a>, as Maurice Obstfeld warns that the \u201cair is coming out of the balloon\u201d around the world. But Obstfeld isn\u2019t expecting the US to fall into recession \u2014 instead, he sees growth to progressively slow down in 2019 and 2020. That comes as business confidence in America has fallen for the third consecutive quarter. <\/b>US CEOs are still optimistic<\/a>, just not as much as before, according to a survey by the Business Roundtable.<\/p>\n

Want more from the crystal ball set? <\/b>Go read former Mideast hand Robin Wigglesworth\u2019s latest column for the Financial Times<\/a>, wherein he looks at how strategists are calling 2019 for US equities and other markets and instruments. Among the takeaways:<\/p>\n