As we head into the second half of 2024, our investment teams share their views on the most meaningful market trends and potential opportunities and risks.
Cutting Through Complexity
Heading into 2024 we highlighted how new economic realities were taking shape, including higher-for-longer interest rates, elevated geopolitical risk and megatrends rapidly transforming industries. These realities are playing out as we cross the midpoint of the year. At a macro level, inflation persistence means central banks are pivoting to rate cuts at a slower pace than anticipated six months ago. In our view, evolving expectations on the exact timing and pace of policy shifts underscores the need for a dynamic investment approach in the months ahead.
As the macroeconomic cycle adjusts, the world remains in an era of profound geopolitical change. Conflict escalation in the Middle East and Ukraine remain major risks. The buildup and eventual fallout of key political elections globally are heightening market volatility. These uncertainties are playing out as secular megatrends—from artificial intelligence to sustainability—accelerate and reshape economies and industries. Understanding the nuances of these forces and how they interconnect can enable companies and investors to potentially capitalize on the opportunities they create.
You can now read the full whitepaper at the link below
