Morgan Asset Management, 68% of respondents highlighted a recession as the biggest risk to portfolios while 83% stated 2024 will be the year of fixed income. This webinar assessed the outlook for markets in 2024, the importance of asset allocation within fixed income and the rising demand for ...
(See Glass Half Full Outlook for 2024). With an uncertain presidential election around the corner in the United States, and many other important elections taking place across the world, there is certainly a lot to consider. On the more cautious side, equity markets are now nicely higher, and...
10 January 2024 By OCBC Wealth Advisory 20 mins read Overall, we see a broadly favourable outlook for risk assets in 2024. Rate cuts by the Federal Reserve will support financial markets despite global growth slowing. Continue to hold more longer-dated bonds, as such bonds usually outperform...
Key points • Peak interest rates support fixed income • Capital gains hard to come by • Bonds provide improved income returns • Equities at risk from recession • Earnings forecasts are likely to be cut further • Some scope for sector rotation • Much depends on energy prices....
A soft landing would likely prompt the Federal Reserve to lower its key interest rate in 2024, which would help restore a more normal shape to the yield curve, where longer-term bonds offer higher yields than shorter-term ones. However, a potential challenge for the bond market is the ...
With central banks all but finished raising interest rates, the start of a rate cutting cycle in 2024, would be a real support for bonds. Corporate default rates will likely rise, although with balance sheets relatively robust, we are not expecting them to spike significantly. Nevertheless,...
Positioning for 2024 Within our MAI portfolio, we currently favour bonds over dividend equities due to the appealing yields in certain segments of the bond markets. Although we continue to maintain an allocation to dividend equities, we have adjusted our allocations as the credit markets present opp...
if growth disappoints. Given our relatively benign economic outlook, we think it’s sensible to stay close to neutral in allocations to duration, or interest-rate risk. We do think US and UK sovereign bonds are relatively attractive, given the fact there...
For equity markets, relatively little has changed since the start of 2024. The improvement in the earnings outlook makes up for a smaller-than-expected tailwind from lower Fed rates, in our opinion. We remain Overweight global equities relative to bonds and cash. This is partly driven by our...
7.2% GLOBAL HIGH YIELD BONDS ANNUALIZED RETURN FORECAST ABUNDANT YIELDS We largely expect returns across fixed income to match yield to maturities. Source: Northern Trust Asset Management, Bloomberg. Coupon return calculated as yield to worst on June 30, 2023. Capital Market Assumption (CMA) model...