LGT WM – Outlook, 2024

LGT Wealth Management (LGT WM) introduces its annual outlook document, which explores the global economic landscape and provides insights into macroeconomic shifts that shape their vision for the future. This publication aims to guide investment strategies and position clients for success in an ever-changing environment. The task of making market predictions is challenging, especially when uncertainties such as inflation concerns and geopolitical events are taken into account. Previous forecasts for 2023 did not accurately predict scenarios like a recession in the West, Chinese markets outperforming developed markets, a mid-year pivot by the Federal Reserve, and bonds outperforming equities. Recognizing the complexity and, in many cases, impossibility of accurate forecasting, LGT WM focuses on highlighting global shifts, themes, and trends that reshape the investment landscape over the long term. The document discusses the implications of elections in major global economies on markets, with a focus on policies and geopolitical tensions. LGT WM believes that Asian markets will outperform developed markets as high interest rates impact consumer and corporate balance sheets in the West. They also outline areas that are expected to perform well as interest rates decrease, such as private equity and corporate bonds. Quality companies with resilient business models, low debt, and stable cashflows will always be integral to LGT's investment approach, whether in equity or bond portfolios.