Free Talk: The Tipping Point

Sharing insights on the tipping points of macro and bond market could help investors identify the compelling opportunities for the rest of 2024.

February 2024, From the Field


 

 

Event Summary

The global economy appears on the brink of a major transition. Last year was characterized by rising inflation, rate hikes, heightened geopolitical risk, equity index concentration and bond market volatility. Cash became king with many investors deciding to sit on the ‘risk free’ sidelines.

Now, inflation is moderating and rate cuts are expected – although geopolitical risks seem to be even more significant. So, what does the rest of 2024 have in store for bond investors? Are we approaching a ‘tipping point’ at which risk appetite returns and the time for sitting on the sidelines is once again overtaken by the fear of missing out? And if so, where should investors be looking to reallocate their cash?

 


 

Arif Husain Chief Investment Officer, Head of Global Fixed Income
Kenneth A. Orchard Head of International Fixed Income
Samy Muaddi Head of Emerging Markets
Tomasz Wieladek Chief European Economist
Ritu Vohora Investment Specialist, Capital Markets

 

 

   

   

From the Field

Conditions are ripe for a Goldilocks economy, but dangers lurk

Slowing inflation and the scope for rate cuts suggest a moderate growth recovery is in the cards, but geopolitical risks could undermine this.

    

 

 

 

Additional Disclosures

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Risks

Fixed-income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall.

Emerging markets are less established than developed markets and therefore involve higher risks.

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