Perspectives 2024

César Pérez-Ruiz and Alexandre Tavazzi from PWM’s CIO office discuss the current year, which is set to be challenging for the global economy and financial markets. Both inflation and growth are set to slow, which should mean that interest rates come down. But outside China indebtedness could test the authorities’ ability to stimulate sluggish economies.

In terms of asset classes, bonds still look more attractive than equities, but whereas European investment-grade credits are seen as a sweet spot, caution is warranted when it comes to lower-quality bonds. Within equities, rate cuts could herald a broadening out of market gains beyond the ‘Magnificent 7’, although AI is set to remain a strong theme in 2024.