2024-01-09 14:47:02 ET
Ned Davis Research highlighted on Tuesday what it sees as the top macro risks for 2024. The financial institution listed restrictive central banks, a weaker dollar and liquidity issues as the main threats to market gains.
See below the three macro risks of 2024 that Ned Davis Research listed:
- “Central banks remain restrictive for too long driving their economies into recession.”
- “A weaker USD keeps inflation uncomfortably above the Fed’s target disappointing markets.”
- “Central banks drain liquidity from markets tightening financial conditions.”
NDR noted that the above risks listed could present challenges to policymakers and investors this year.
As a result of its risk concerns, NDR also shared its asset allocation recommendations. The financial institution currently recommends a portfolio with 70% stocks and 30% bonds. Moreover, NDR went on to express that it favors small-caps over large-caps and holds a neutral stance on growth versus value.
For investors who share a similar viewpoint, see below a grouping of small cap exchange traded funds that may be worth analyzing in further detail.
Small-Cap ETFs: ( IWM ), ( IJR ), ( NYSEARCA: VB ), ( NYSEARCA: VBR ), ( NYSEARCA: VBK ), ( SCHA ), ( IWO ), ( SPSM ), ( AVUV ), ( FNDA ), ( DFAS ), ( CALF ), ( NYSEARCA: VIOO ), and ( AVDV ).
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For further details see:
Look to small caps with central banks, weak dollar among 2024 macro risks - Ned Davis Research