Economic and market outlook

In the second issue of our quarterly publication PERSPECTIVES, we provide an update on our economic and investment outlook for the third quarter of 2024 and beyond.

In the first issue of our new quarterly publication, we update our forecasts for 2024 on the macroeconomic front, as well as for equities, fixed income, commodities and foreign exchange.

ESG investment has gone mainstream, with performance implications. Energy transition may point the way to investing in the sustainable economy.

After years of extremely low interest rates, the investment universe is now complete again thanks to the renewed attractiveness of bonds as an asset class – and is likely to remain so for the foreseeable future in our opinion.

U.S. growth stocks are probably still the way to go for the long term. European and Japanese financials could appeal too, as well as consumer discretionary, industrials and energy.

Be aware that measures to create stability may just create new risks. Rates are still on our radar.

Robust earnings growth is expected globally in 2024. Expectations of higher rates for longer may however put a lid on valuations expansion.

We see these as the key global challenges: how to sustainably utilise and conserve our global resources; how to provide for the global population, and how to develop key technologies to help us all do this.

Expect only moderate growth in industrialised economies in 2024. The long-term challenge remains the delivery of investments to enhance economic competitiveness and fight climate change.

Domestic political developments are increasingly shaping foreign policy agendas – and 2024 will be the biggest election year in history.

Despite the economic, geopolitical and climatic challenges the world currently faces, we think that 2024 is likely to be a decent year for investors. In our annual outlook we present our current economic and asset class forecasts for 2024, possible key issues for the coming 12 months and our long-term investment themes.

Our latest CIO Insights quarterly provides an update on our economic and investment outlook for the fourth quarter of 2023 and beyond.