IN FOCUS6-8 min read

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.

18/12/2023

Authors

Kate Leppard
Head of Client Service, UK Wealth Management
Caspar Rock
Chief Investment Officer
Grace Lavelle
Investment Strategy Director

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.

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. 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.

 

Authors

Kate Leppard
Head of Client Service, UK Wealth Management
Caspar Rock
Chief Investment Officer
Grace Lavelle
Investment Strategy Director

Topics

Outlook 2024
Global economy
Economics
Economic views
Market views
Equities
Inflation
Global Market Perspective
Perspective

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.