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Wealth management outlook for 2024

The world's major economies will continue to see their fortunes diverge over the coming year.

27/12/2023
Wealth Management - The year ahead 2024 cover SWM

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. 

To find out more, read our wealth management outlook for 2024 here or watch our investment team's latest webinar below.

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