PLDR - Capital Markets Outlook: Q1 2024

2024-01-30 20:20:00 ET

Summary

• As normalization continues to play out during 2024, we expect inflation to return to the Fed’s target and for economic growth to moderate. As a result, rate cuts are likely to start between the second and third quarter.
• Softer consumer balance sheets and the lack of a corporate inflation cover limit further earnings upside. We think investors should consider opportunities in areas such as quality growth, value, high-dividend, low-volatility and small-cap equities.
• Even greater potential remains in the bond market, with rate cuts expected and long-term yields likely to fall further. Credit opportunities are highlighted by high-yield bonds, where yields remain attractive.

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