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B. G., Opalesque Geneva: The U.S. Federal Reserve will deliver four interest rate cuts this year. As a result, the 30-year mortgage rate will fall from nearly 6.7% to roughly 5.6% by the end of 2024, and the federal funds rate will end the year at 4.30%. Global growth will be slower this year, especially in Europe and China, and inflation - though moderate - will remain above central bank targets. And a global recession should be avoided.
Those predictions are found in the inaugural Franklin Templeton Institute Global Investment Management Survey, which gathers the views of 300 of its senior investment professionals from different teams around the world, covering public and private equity, public and private debt, real estate, digital assets, hedge funds and secondary private market investments.
The participants forecast the S&P 500 to end the year at 4,744 (currently at just above 5,000), and a 5.8% earnings growth in the US - so lower than the 9.7% expected. Value stocks will deliver more than growth stocks, and US and emerging markets should be preferred.
The two-year and the ten-year Treasury Bill yields will decline - although the latter not as much. Municipal bonds will continue to be attractive. And the market should favour investment-grade debt as default rates for high yield continue to rise.
Within alternative asset classes, comme...................... To view our full article Click here
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