Loomis Sayles – Investment Outlook, Oct 2024

The authors of the Loomis Sayles – Investment Outlook, Oct 2024 are optimistic about the performance of credit and equity markets as we approach 2025. They highlight a positive trend in the US economy, with earnings growth spreading across multiple sectors rather than being concentrated in mega-cap technology companies. This broader base of earnings growth indicates to the authors that the credit cycle still has room to expand. They find investment grade and high yield corporate credit in the US market attractive due to anticipated limited downgrades and a low default rate. Additionally, they believe yields in global credit markets will decrease as central banks continue to cut interest rates. Overall, the authors are bullish on the outlook for both credit and equity markets based on solid fundamentals.