Investment Outlook

Outlook 2024: Rate cuts at last

Key takeaways: 

  • Investors will face slowing global growth, ongoing falls in inflation, and geopolitical risks in 2024
  • We think a sharp US downturn will be avoided, with interest rate cuts in the second half; the eurozone could stage a slightly larger recovery. China’s growth will slow, and Japan will see an end to negative interest rates
  • We maintain a neutral exposure to risk in multi-asset portfolios, balancing the positives from recent economic resilience and disinflation against the expected delayed effects from higher borrowing costs
  • Peaking yields and a soft economic landing should be a positive environment for high quality fixed income. We see gains for the S&P 500 being driven by earnings growth.

Read the full Outlook 2024 Insight by Lombard Odier by following THIS LINK.