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MarketScape · 01.22.24

2024 Investment Outlook: Falling Inflation and Rates, Rising Political Risk

Rate cuts and lower inflation likely will accompany slower economic growth and a rise in global political risks in 2024 — meriting some caution on equities.
  • Markets & Economy
  • Multi-Asset Insights
  • Fixed Income Insights
  • Equity Insights
Key Points
What it is
We give our take on the forces likely to move markets this year: the economy, inflation, central bank rates and global political risks.
Why it matters
A slowing economy and political tension could spark volatility, but falling interest rates and inflation may support markets.
Where it's going
U.S. equities appear somewhat pricey for a slowing economy, meriting caution by investors. We see central bank cuts around mid‑year.
Main Point

Keeping an Eye on Risks in 2024

We expect lower inflation, central bank rate cuts and a soft economic landing to support markets this year. But with a slowing economy and tense global politics overhanging the market, we believe 2024 will especially reward investors who manage their portfolio risks well.

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Anwiti Bahuguna, Ph.D.

Portfolio Manager

Anwiti Bahuguna, Ph.D., is chief investment officer of global asset allocation for Northern Trust Asset Management. She is responsible for managing investment performance, process and philosophy for multi-asset strategies globally. Anwiti leads NTAM’s strategic asset allocation, tactical asset allocation and capital market assumptions, and oversees the portfolio construction group and multi-manager business.

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