Research Briefing | Jan 5, 2024

Equities Quick Take – Buoyant investors may be disappointed

Our risk sentiment indicator is flashing red again following the sharp end-of-year equities rally. We see scope for disappointment in the near term as rate cut expectations are pushed back and the earnings recovery stalls.

Our calls:

  • The market has already priced in a very rosy macro outlook for 2024 and is vulnerable to disappointment.
  • We also expect further EPS disappointment in the near term.
  • We think developed market equities will struggle to make further headway and are at risk of a correction in the near term. We see better risk-reward in fixed income assets and in emerging market equities.

Download the report to find out more.

Back to Resource Hub

Related Posts


What Could Cause the ‘Magnificent Seven’ Stocks Bubble to Burst?

The Magnificent Seven are propelling US equity indices to unprecedented concentrations. The question is: Will the megacap dominance persist?

Find Out More


Fixed Income: Kiwi bonds to fly high

We remain steadfast on our long-standing heavy overweight in New Zealand government bonds within our global DM fixed income allocations.

Find Out More


Long run drivers of EM convergence | Beyond the Headlines

We see the current conjuncture as representing a sweet spot for emerging market assets as disinflation is secure, activity is turning up, valuations are generally attractive, and global financial conditions appear supportive. In this week’s Beyond the Headlines, join Gabriel Sterne, Head of Global Emerging Markets, highlight why long run views are particularly potent right now during the Inaugural Global Economic Outlook Conference in London.

Find Out More