US stock markets are in for a very volatile 2020 and look like they will close this year in "nosebleed territory".
That is according to market analyst Paul Sommerville, who said there was considerable mismatch between what was happening on stock markets and the reality on the ground for global economies.
"2019 was a very strong year for stock markets. Every major market has done extremely well, with Greece topping the pile with growth of over 40%. US markets are up around 28%. The tech sector in the US gained around 40%."
However, he warned that it was important to view these gains in the context of the situation on markets this time last year.
"There was huge selling pressure at the end of 2018. Every asset class, except cash, was negative for the year. There was a huge u-turn this year, because of central banks cutting interest rates and printing money."
The major central banks were forced into action because of signs of slowdown in economies around the world.
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"What we've seen is markets performing very well, but the economies not so much. Germany has had negative growth for six months. The US is slowing, China is slowing. Something has to give in 2020."
The European economy is expected to pick up steam in 2020, but from a position of considerable weakness this year.
"I would expect Germany to loosen monetary policy," Paul Sommerville said.
"European markets may do ok, but I'd be very wary of US markets. I'd suggest we're in for a very volatile year with lots happening. Expect the US markets to struggle at points in 2020," he concluded.