Investing in the twilight zone

The economic expansion of the last decade has been a consistent tailwind for financial assets. We see next year as the start of the twilight zone between expansion and an eventual downturn that will likely mark the end of the cycle.

Twilight does not mean that darkness is descending immediately, but it’s characterised by fading visibility as previously clear signposts melt into obscurity. Concerns about the fragility of financial markets will inevitably increase as the ‘light’ starts to fade.