Morgan Stanley IM: Key Themes for 2024

In the post-COVID world, many anticipated a shift in how economics, politics and finance would function. Instead, we are seeing signs of a reversion to familiar patterns. “Higher-for-longer” interest rates, a response to the inflationary pressures post-pandemic, may not be as prolonged as some had forecasted. The transition to green energy, seen as a swift response to climate change, is proving to be more gradual. Global populism, a fallout of increased inequality, may be peaking. The traditional 60/40 investment portfolio, thought to be outdated after a dismal 2022, is back. Artificial intelligence (AI), while transformative, will disperse throughout society and eventually trend toward becoming a commoditized service: important and influential, but not necessarily sensational. Read more in our Key Themes for 2024.

^{RISK CONSIDERATIONS
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Asset allocation/Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing. In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries. Stocks of small-capitalization companies entail special risks, such as limited product lines, markets, and financial resources, and greater market volatility than securities of larger, more-established companies. The commodities markets may fluctuate widely based on a variety of factors. These include changes in overall market movements, domestic and foreign political and economic events and policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates, domestic and foreign inflation rates and/or investor expectations concerning inflation rates and investment and trading activities of mutual funds, hedge funds and commodities funds.}