Capital IdeasTM

Investment insights from Capital Group

Outlook 2024: Prepare for changes in the investing climate

Get the Outlook
2024 report

Heading into 2024, it is difficult to remember another time when the outlook was so uncertain. Recession or expansion? Inflation or deflation? Higher interest rates for longer or central banks preparing to pivot? Take your pick and you will find a pundit arguing for each scenario as if it was a foregone conclusion.

As long-term investors, Capital Group prefers to focus on larger trends, events that may shape not just the next year, but the next decade or more. In our Outlook 2024, Capital Group’s chairman and chief investment officer Martin Romo uses the analogy of the daily weather report versus changes in long-term weather patterns. While many others are concerned about the near-term forecast, Capital Group is looking for signs of large-scale change — those events and trends that could have a significant impact on companies, industries, economies and the world at large.

Along those lines, here are some questions we are asking today: How will rapid advancements in artificial intelligence alter the way companies do business and which are positioned to win the AI race?

Will electricity, wind and solar power displace fossil fuels as our primary source of energy and how long might that process take?

In the bond market, with US Treasury yields near 16-year highs, are we at the start of a historic opportunity as real income returns to the fixed income universe?

On the other hand, we must be wary of gathering storm clouds. Will rising government debt levels lead to lower economic growth? How might worsening tensions between the US and China affect global trade? What is the risk that wars in Ukraine and the Middle East spill into wider fields of conflict? And, in a pivotal US election year, will volatility keep nervous investors on the sidelines?

Large-scale change can bring a high degree of volatility but also unprecedented opportunities – and that is prime time for active investing. Against this backdrop, here is our 2024 Outlook report.

Hear from our investment team.

Sign up now to get industry-leading insights and timely articles delivered to your inbox.

By providing your details you are agreeing to receive emails from Capital Group. All emails include an unsubscribe link and you may opt out at any time. For more information, please read the Capital Group Privacy Policy

Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.