Welcome to the 10th edition of the FAB Global Investment Outlook (GIO). We are pleased to unveil this year’s GIO publication, which stands out as our most comprehensive to date. It delves into the most significant macroeconomic and financial topics, providing readers with a distinctive overview of market trends in 2024. We hope that these analyses will contribute and be relevant in your investment decision making process. Wishing you a prosperous and fulfilling year ahead.
In US, earnings growth is expected to be positive across the sectors in 2024. The technology sector remains the main driver of growth, and it also acts as an enabler for growth in other sectors. In 2024, we expect double digit return from the US market. However, the key macro risks to be closely monitored includes slower than expected economic growth, stickier inflation, delayed negative impact from high interest rates exceeding expectation, the upcoming US election, and the strained US – China trade relations.
Despite the year-end rally, yields are still hovering at multi-year highs, hence our title “there’s finally income in fixed income”. Bonds offer great value, so we’re applying a simple strategy of being in the market and earning a high carry whilst waiting for price gains, and which should come through at some point during the year. For those willing to take a one-year time horizon, this year could finally be “the year of the bond”.
Recent changes to the industry landscape may permanently shape its trajectory. Some sectors are poised to exhibit drastically altered fundamentals according to many commentators and industry leaders must continue to navigate these shifting trends. What is evident now is that not all markets / submarkets behave in the same way, despite experiencing similar downward pressures, such as rising interest rates.
