Webinar: The year ahead 2024 outlook
In our latest webinar, CIO Caspar Rock and Investment Director Grace Lavelle discuss the outlook for 2024 with Kate Leppard, Head of Client Service.
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A likely peak in interest rates has prompted us to add to equities. However, elevated valuations and buoyant market sentiment mean we have a neutral stance on stocks as we enter 2024. We are overweight government bonds, given attractive levels of income.
The US has defied forecasts of a recession, with consumer spending supported by a strong labour market and excess household savings. However, the interest rate rises we have seen to date are still likely to take a toll on activity and we expect the US economy to slow in 2024.
Higher interest rates have had a greater impact on consumers in the Eurozone and the UK, with both regions now close to contraction. In Asia, ongoing challenges in China's housing market continue to depress activity. By contrast, the outlook for Japan is brighter as consumer and business spending rises and the corporate sector embraces structural reform.
This degree of divergence across global markets is unusual and could create tactical opportunities over the coming year.
This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.
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