Citi – Wealth Outlook, Mid-Year 2024

The global economy is showing signs of growth and normalization, providing various opportunities for returns and risk management. Corporate profits are on the rise, while employment gains are stabilizing in the US. It is recommended to be discerning in equity investments, with a focus on small- and mid-cap US growth equities, Asian equities, healthcare, economic security-linked investments, and US dollar-denominated fixed income. Risk management is crucial due to political, policy, and geopolitical concerns, highlighting the importance of global diversification. Investors who focused on loss avoidance last year may have missed out on opportunities for portfolio recovery. It is important to avoid short-term myopic investment decisions and focus on long-term value opportunities in a potentially volatile market. The upcoming US presidential and congressional elections may impact foreign policy and trade, but are unlikely to significantly influence the economy or overall market opportunities. Being prepared for various possible impacts without derailing core portfolios is key amidst geopolitical instability and increasing polarization.