Perspective Advantages

July 2024 Investment Conditions & Outlook Executive Summary As we enter the latter half of 2024, the economic landscape becomes more complex. Although inflation is beginning to cool, mixed signals from the labor market and other indicators create uncertainty about the Federal Reserve’s plans for short-term interest rates. Despite the gradual decline in inflation, the road ahead won’t be smooth, and market volatility is likely to persist. The US stock market displays uneven patterns of strength and weakness, resembling a “K” shaped recovery from the early days of the pandemic. Stable Treasury yields could support the stock market, but sudden inflation or economic growth changes could increase volatility and weaken performance. While concentration risk remains high (a few domestic stocks continue to do great while everything else is relatively disappointing) in major indexes, it also creates opportunities, highlighting the importance of focusing on quality and diversification in investments. After a challenging 2023, the first half of 2024 has witnessed a global economic recovery, lifting the world’s stock market by nearly 10%, according to the MSCI World Index. We anticipate this recovery to continue in the year’s second half, albeit with potential divergences in central bank policies and election-related risks that […]