Capital Markets Outlook: 2Q 2024

What You Need to Know

We think the intersection of hope and fear offers opportunity across asset classes and market segments. Tapping into it, however, requires in-depth research and a discerning eye. Waiting for a clarion bell to ring before deploying capital might leave investors a step behind.

Key Takeaways

  • Investors are wrestling with concerns over stubborn inflation, faster-than-expected economic growth and a tight labor market. We expect normalization to continue, though the path won’t likely be a smooth one.
  • As equity markets catch their breath, we expect fundamentals to come under greater scrutiny, which we think will open up opportunities in both different equity styles and low-volatility stocks—for more risk-aware investors.
  • After a whirlwind first quarter, interest rates ultimately settled in higher across most of the yield curve, neutralizing tighter credit spreads in corporate bonds. On an all-in basis, we believe current yields and low bond prices could drive solid return potential.