Interest rates should start to come down as central banks move on from fighting inflation
Source: abrdn, Haver, November 2023. Forecasts are offered as opinion and are not reflective of potential performance. Forecasts are not guaranteed and actual events or results may differ materially.
- Some emerging markets have already started to cut interest rates. Others are expected to follow this year.
- The European Central Bank is likely to be the first in the developed economies to cut interest rates in 2024.
- We think the US Federal Reserve will also start to cut by the second half of 2024. Falling policy rates everywhere will mean lower bank deposit rates.
Business cycles around the world are likely to diverge
- Europe’s economy is set to shrink by the start of 2024.
- China’s growth will be held back by problems in the property sector, even as government policies prevent a more serious slowdown.
- The US economy is very strong, and it’s only expected to slow in mid-2024.
Political uncertainty may mean more volatile financial markets
Source: abrdn, November 2023
- There are many national elections in 2024, with the US presidential election particularly important to global economies and markets.
- International political risks are still around, with the latest conflict in the Middle East and tensions between the US and China adding to uncertainty.
Income from different asset classes
Different investments can produce a regular income stream. Investors are able to select income-generating investments that best reflect their risk appetite. Take a closer look at three approaches:
Equities
Income and growth -Targeting dividend payments with the growth potential of stocks.
Strategies
Equity income
Global stocks
- Emerging market stocks
Asian stocks
Real estate
Diversified income - Harnessing every dimension of real estate opportunity to meet client goals.
Strategies
Global Real Estate
Rental Income
Infrastructure
Fixed income
Resilient income - Delivering long-term payments in good times and less good times.
Strategies
Corporate Bonds
Emerging Markets Bonds
Sustainable Investing