- 'Rolling recessions' will continue to play out in economies around the world.
- Normalized inflation and interest rates are expected in global economies, including
Canada . - Attractive valuations and an improved earnings environment supported by the potential of an economic recovery may lead to an improved outlook for investors.
"The 'rolling recessions' currently taking place in economies around the world, including
In its 2024 Market Outlook, IG's Investment Strategy Team expects the following investment themes to emerge as potential drivers for the markets in the year ahead:
As sectors experience ebbs and flows, consumers and investors will have an opportunity to witness how markets can self-correct and continue to move forward. The Outlook notes that some areas, like manufacturing and global trade, are reaching a bottoming level, but a potential recovery in 2024 is approaching. These 'rolling recessions' are more common than nationwide downturns and show the resilience of an economy. In these economic phases, a disciplined, long-term investment strategy can help promote sustainable growth. Further, the risks of a
According to the report, high inflation has been apparent in major economies over the past few years, with
This year did not see success across equities. The S&P 500 Index, for example, was dominated by concentrated gains in the mega-cap 'magnificent seven'. However, the Outlook states that this environment will set the stage for a potential broadening out of market breadth in 2024. The prospect of an economic recovery in the next year should lead to an improved earnings environment and this, combined with attractive valuations and continued easing of inflation, is likely to deliver a year of positive equity gains for investors.
"If we allow ourselves to look more closely, we might discover that the 'small stuff' can lead us to a better possible outcome," noted
"This leads us to a more optimistic view on the global economy and markets as we head into 2024. There are challenges – the Canadian economy being one of them. But largely, the data points to a general sense of improvement. And with improvement comes opportunity."
Read more about the IG Wealth Management's 2024 Market Outlook here.
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across
This commentary may contain forward-looking information which reflect our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of 10/31/2023. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
SOURCE IG Wealth Management
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