The global economy has experienced major shifts in the past few years, and investors will need to keep pace with ongoing change.
Economic indicators are distorted, and fixed income markets are vastly different. Equity markets have become highly concentrated but may offer new opportunities for investors willing to taking a broader view.
Attentive investors can find reasons for caution, but optimism heading into 2024.
VIDEO
Key takeaways from our 2024 Global Market Outlook.
Investment professionals from the T. Rowe Price Multi-Asset Division presents theirviews on the relative attractiveness of asset classes and subclasses over next 6 to 18 months.
Valuations are broadly neutral with pockets of opportunity. We expect earnings to remain resilient in the near term, but global growth remains uncertain due to lagged effects of tighter monetary policy.
Yield levels are attractive relative to recent history. However, increased supply and sticky inflation could be headwinds, particularly for longer-term bonds. Credit fundamentals remain supportive.
With many central banks on hold, cash provides liquidity and continues to offer relatively attractive yields. However, the trajectory of easing could drive yields lower in the back half of the year.
Earnings growth expectations for 2024 approach double digits as U.S. economic activity has proven resilient thus far. Valuations are full. Higher rates will pressure companies with high interest expenses.
Valuations are attractive on a relative basis, but the growth outlook remains challenged for some major economies, particularly Europe and China. Lower rates could support more rate-sensitive economies.
Valuations and currencies are attractive. Monetary easing could support growth. Chinese equities reflect headwinds amid housing sector concerns, but other regions should benefit from rebounding exports.
Yields are broadly attractive. We favor core and shorter duration as long-term bonds could remain vulnerable to inflation and heavy new supply. Credit fundamentals remain supportive.
Global central banks appear to be near peak tightening as inflation shows signs of slowing. Yields look attractive on a USD‑hedged basis.
Longer‑term yields likely are near a peak but remain vulnerable to increased supply and sticky inflation. Treasuries should offer ballast to risk assets as correlations are expected to decline.
Break‑even yields reflect a continued deceleration in inflation. Signs of inflation reaccelerating could present a reentry point.
Attractive yields should provide a cushion if spreads widen. Credit fundamentals remain strong, and while default rates could rise, we do not expect them to exceed their historical averages.
WEBINAR
Our chief investment officers weigh in on the state of markets and the economy heading into 2024.
Thinking
Key areas of focus for investors in markets around the world.
Each month, our Investment Committee prepare a report revealing the two market themes they are watching, their bull and bear views per region and their latest asset class over and underweights.It has been designed to aid you in your decision making and client conversations.
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