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Key Investment Themes of 2024


Source: Simply Wall St


An update on industry views:


1. JP Morgan Asset Management:


Expect the unexpected.

A boring year for the US economy is expected, with growth slowing compared to 2023.

Consumer spending will be key for other economies.

A well-diversified portfolio is recommended to benefit from a range of outcomes.

US investors are underweight mid and small cap stocks, as well as emerging market stocks.


2. Russell Investments:


REITs are attractively valued and benefit from lower yields.

The "quality factor" is favored in REITs and other stocks.

Lower-quality REITs could disappoint if rates remain high.

Regional snapshots for Canada, Australia and New Zealand are provided.


3. Julius Bär:


Higher interest rates may not be sustainable due to global debt levels.

Central banks may tolerate inflation closer to 3%.

Rates could return to the 2-3.5% range sooner than expected.


4. T.Rowe Price:


Global equity markets face challenges and volatility.

Investors need to look beyond big tech and explore a wider range of sectors and regions.

Opportunities may be found in US healthcare, energy, emerging markets, Japan and certain Chinese "high-tech industrials".


5. Blackrock:


The emerging climate resilience theme is highlighted.

Blackrock published a 7-page report on this theme and potential opportunities.


6. Lazard:


Sentiment around China may be too negative.

China's government stimulus measures and stabilizing property sector are mentioned.

China's role in the renewable energy supply chain and EV industry is emphasized.

Outlooks for the Eurozone, Japan and geopolitical issues are also covered.


7. Morgan Stanley:


Fixed income offers better risk/reward trade-offs than other asset classes.

China's challenges will continue to be a headwind for its own economy and others.

India and Mexico are exceptions and expected to benefit from strong GDP growth and supply chain shifts.


8. Merrill:

The US equity market and economy have outperformed most since 2009.

The US share of global GDP has remained stable despite China's growth.

US equities deserve a substantial premium due to resilience and corporate performance.


9. JP Morgan Research:


Recession risk is modest, but economic and earnings growth will weigh on returns.

Inflation will remain stubborn and rates will stay higher for longer.

Market volatility may be needed before substantial rate cuts occur.

US stocks will continue to trade at a premium due to strong cash flows and large tech weightings.

Emerging market stocks could improve later in 2024 due to undervaluation and underweight investor exposure.


10. Goldman Sachs:


The Fed will cut rates quickly if volatility picks up ("Fed Put").

A "higher for longer" rates scenario would hurt heavily indebted companies and consumer-facing businesses.

Positive yields are now available from fixed-income assets, allowing for diversified portfolios again.


Overall Insight:


Research teams are cautiously optimistic, but expect lower returns than 2023 with pockets of outperformance.

Volatility could come from geopolitics, interest rates, and corporate profits.

2024 could be a good year to buy quality stocks at attractive prices.

Prepare a watchlist with your target stocks and prices.


As always talk to your adviser within the Just Service Network if you would like information or otherwise review your personal financial planning.


For all enquiries talk to your adviser or email info@justserviceglobal.com


Regards

The Just Service Client Service Team

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