J.P. Morgan – Mid-Year Outlook, 2024

Global growth is surprising analysts by remaining strong despite higher interest rates and inflation, with global equities delivering over 10% returns this year. Economists have revised their 2024 projections for real GDP growth upwards to 3% and decreased forecasts for Federal Reserve rate cuts to just two. The potential economic impact of artificial intelligence is considered substantial. Key market and macroeconomic variables in developed economies appear healthy. J.P. Morgan expects global equities to continue to perform well, with potential for attractive returns in credit, mid-cap equities, real estate, and private equity assets. However, clients are advised to be fully invested while remaining alert to potential geopolitical risks, such as global conflicts and uncertainties surrounding the upcoming U.S. elections and deteriorating relations between the United States and China.