Market Outlook Winter 2024
As we start 2024, we make the following observations about what we believe are the most important uncertainties that will impact investments in 2024. (1) Will inflation continue to fall as expected towards the Fed’s 2% target? (2) Will there be a recession? (3) Will artificial intelligence adequately deliver on its promise in 2024?Notably, investors’ opinion on the first question is resoundingly “yes.” Investors’ opinion on the second question has shifted during the last several months and there is now a strong consensus opinion that the answer is “no.” Based on the performance of technology stocks in 2023 and high relative valuations, it seems clear that investors expect a lot from artificial intelligence in 2024. Read along as we explore these questions in more detail.