Macro views
Macro views

2024 Perspectives: The year of the pause and the pivot

December 6, 2023 | 2 min read
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Key themes for 2024

  • Macro
    In 2024, expect challenges for the U.S. economy as resilience wanes amid rising household debt and job cuts. Global growth may slow, posing risks amid geopolitical tensions, but it could ease inflation pressures. Prepare for volatility, but also opportunities ahead.

  • Equities
    Entering 2024, central bank policy changes, rising government debt, geopolitical tensions, and consumer vulnerabilities will likely challenge equity markets. Active managers may find opportunities in overlooked sectors like energy and materials. Amid uncertainty, focusing on investing fundamentals is crucial.

  • Fixed income
    Despite 2023 ending on a strong note, 2024 brings expectations of economic slowdown. While inflation is likely to subside, higher borrowing costs will challenge consumers. Opt for high-quality, short-maturity yield assets amid a central bank rate pause.

  • Multi-asset
    Despite 2023’s surprises, 2024’s outlook is complex. Amid the uncertainty, strategic allocation and active management can create opportunities for investors in the year ahead.

  • Alternatives
    Alternative investments face challenges amid ongoing monetary policy measures. A potential U.S. recession and stricter banking sector regulatory oversight add complexity. However, opportunities do exist, and private equity, real estate, and inflation-sensitive assets may thrive in 2024.

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Risk considerations
Investing involves risk, including possible loss of principal. Past Performance does not guarantee future return. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. Asset allocation and diversification do not ensure a profit or protect against a loss. Inflation and other economic cycles and conditions are difficult to predict and there Is no guarantee that any inflation mitigation/protection strategy will be successful. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Real estate investment options are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates. Real assets include but not limited to precious metals, commodities, real estate, land, equipment, infrastructure, and natural resources. Each real asset is subject to its own unique investment risk and should be independently evaluated before investing. As an asset class, real assets are less developed, more illiquid, and less transparent compared to traditional asset classes. Lower-rated securities are subject to additional credit and default risks. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. Emerging market debt may be subject to heightened default and liquidity risk.

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