Hello, I'm Neil Mukherjee, TI, wealth Management,
chief Investment Officer,
and today I'm excited to share with you some
of the highlights of our TI Wealth Management
2024 midyear outlook.
This outlook, resilience amidst uncertainty, recaps,
economic and financial market performance
through the first half of 2024, as well
as our forward looking views on the gross inflation,
central bank policy, equity and fixed income markets
and key risks for the remainder of what is sure
to be a noisy election year.
The current post pandemic business cycle continues
to feel the lingering impacts of historic fiscal stimulus
40 year high inflation levels,
a record move higher in interest rates,
disruptive geopolitical changes,
and a technological revolution driven
by artificial intelligence during the first half of 2024.
As economic growth remained resilient
and financial conditions eased, the disinflationary process
seemingly stalled at a higher than anticipated level.
The labor market remained especially strong supporting
consumer spending and corporate earnings underpinned a rally
in equities and the continued excitement
around artificial intelligence propelled the technology
sector to new highs.
The big questions for investors are,
as we enter the second half of 2024,
are focused on if inflation can resume its journey towards
the fed's target of 2%,
and will the economy continue to remain resilient enough
to support the ongoing improvement in corporate profits,
or will the higher interest rates truly test this resilience
with spillover impacts
to consumer spending and the labor market.
We are transitioning to a new phase in the markets
in the second half of 2024.
This is a phase when investors will be weighing the benefits
that come with lower interest rates, with the risks
that come with a slowing economy.
In this environment, we believe investors should remain
disciplined and be diversified across various asset classes
and remain anchored
to their appropriate long-term asset allocations.
Overall, the second half of 2024 will be interesting
for investors and we hope
that our midyear outlook will help make sense of
what lies ahead and the steps investors should take
to secure their financial future.