Economist Tiffany Wilding shares four macro themes from our 2024 outlook likely to influence global markets, including the potential for a U.S. interest rate-cutting cycle.
Tighter financial conditions prompted Federal Reserve officials to take a step back from data dependence, and suggest a higher bar for future hikes.
Our cyclical outlook: Markets appear priced for a benign economic outcome that would be a historical rarity given current conditions. Higher bond yields offer resilience amid increasing risks to the global economy.
The spike in bond yields presents an opportunity for fixed income investors to earn capital gains and diversify portfolios.