2024 Outlook: Navigating a fragmented world with ETF solutions
2024 will be a year of celebration at the Paris Olympics, of reflection on the 80th anniversary of D-Day, and of ambition with audacious space missions preparing for lift-off.
For ETF investors, though, the year will not be about ‘take-off’ but about the global economy’s landing point. So what should investors consider for 2024?
2024: A year of fragmentation
We believe there will be key turning points in growth, inflation and monetary policy which may generate opportunities for investors to rotate from a defensive to a more constructive stance during the year.
Explore our Outlook for ideas of what to expect on the financial markets in 2024 and where we believe opportunities may be found through an ETF implementation.
Our investment views by strategies.
Amid slowing global GDP and weakening fundamentals, we believe investors should favour a defensive stance entering 2024.
Look for resilience in developed market equities and consider sector rotation. Reconsider emerging markets as a key performance engine.
Growth is slowing, inflation is coming down and these trends are likely to accelerate in 2024.
Add duration and price in more rate cuts as the global growth picture deteriorates. Focus on quality with a preference for investment grade over high yield.
Thematic strategies, which focus on longer-term, global structural trends, are expected to continue garnering more traction in 2024 and beyond.
Capture potential opportunities created through disruptive secular growth themes such as artificial intelligence (AI), bioenergy and new energy.
A huge amount of investment is required to meet the goals set out in the 2015 Paris Agreement. We believe a holistic approach to responsible investment can help prepare for a better future and be profitable in the long run.
Align your portfolios with the values of responsible investing by prioritising structural themes such as portfolio decarbonisation and financing the energy transition.
Heightened geopolitical tensions have led markets to search for safe havens.
Consider gold and other commodities as portfolio mitigation tools against geopolitical risk and inflation.