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.

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

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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.