Morgan Stanley IM: 2024: “Don’t Call it a Comeback”
Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.22.11.2023 | 06:14 Uhr
- This is the time of year when “year-ahead” forecasts are released, despite the fact that there are still 6 more weeks left in the year.
- Nevertheless, the narrative for 2024 is shaping up to be a year with easing financial conditions, namely lower bond yields and rising equities. I guess we’ll see. . .
- In summary, here is what we are hearing from analysts:
- Inflation is likely to keep falling and the “soft-landing”/no U.S. recession scenario for next year is becoming more mainstream
- The Fed, the ECB and other central banks are priced to cut interest rates
- Global equities may return in the 5-7% area
- If all of this occurs, then volatility will fall, and carry/income strategies will perform well – same for stocks and bonds.
- Perhaps it’s time for the broad financial asset markets to uniformly perform well and make a comeback.
- But, as the famous LL Cool J once rapped - “Don’t call it a comeback!”
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