14 Dec 2023
Capital Markets Expectations for 2024
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Some good news.
Jerome Powell, Chair of US Federal Reserve did not increase interest rates over night in the United States which is another signal that interest rates have peaked and are likely to be cut in 2024.
If we assume that global interest rates have actually peaked then any reduction in 2024 will be good news for all asset classes.
Listed property and listed companies will benefit and are forecast to return 8% to 10% in 2024 if there is a reduction in interest rates because their borrowing costs reduce.
Existing fixed interest securities will gain in value and are forecast to return 4% to 6% in 2024 if new paper is issued a lower interest rate.
CAUTION, please remember that there cannot be any guarantees in regard to these capital markets forecasts because it is not possible to predict future returns with certainty.
Click for table.
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