2024 Outlook: Navigating the Descent
It’s a new year and the global economy is sailing into the unknown after the steepest rate-hiking cycle in decades. The resilience we saw in 2023 may make way for a growth slowdown across developed markets in 2024.
Key takeaways:
- Developed market central banks have likely reached the end of their hiking cycles, but there are several factors to keep in mind that will affect if and when central banks start slashing rates.
- Riskier assets, like equities, appear priced for an economic soft landing, but markets may be underestimating both upside risks to inflation and downside recessionary risks.
- Cash yields remain elevated, but investors can miss out by sitting in cash too long.
- Bonds could be your best friend this year, with the potential to enhance portfolios in a variety of economic situations.
