Capital IdeasTM

Investment insights from Capital Group

Midyear Outlook 2024: the new reality of investing

2024 so far has been a year of diverging economies, equity market highs and election fever – with far more to come.

Over the past 40 years, investors have become accustomed to an environment characterised by generally declining interest rates, low inflation and the rapid advance of globalisation. Since the end of the Cold War, we have also enjoyed long periods of relative geopolitical stability.

All that is changing and, as investors, we must face up to a new reality of investing and consider fresh scenarios. What does this mean for the market outlook? Along with change comes uncertainty, and we are moving from a period of relatively low volatility to what could be much higher in the years ahead.

According to Vice Chair and Portfolio Manager Jody Jonsson, that is what Capital Group is built for. “We are here to help tune out the short-term noise and invest for the long term. There are still so many exciting industries, companies and investment themes to explore; it’s a prime time for active investing,” she says.

“Over the next few years, we are less likely to see a narrow group of highly valued companies dominating returns. US markets will continue to do well, but they will not be the only source of superior returns. Bonds, too, have become more attractive as income returns to the fixed income markets. And despite what sounds like a more pessimistic environment, I think it presents an opportunity for individual stock selection to make a profound difference in portfolios.”

Against this backdrop, we present our 2024 Midyear Outlook. Download the report for insights on:

· How global economies are diverging

· What to expect from central banks

· US election scenarios as we approach the pivotal vote

· Broad outlooks for equities and bonds

· Analysis of regional and asset class opportunities