Developed market equities have continued to perform well in the first few weeks of 2024. In part, this is commensurate with the improvement in some leading indicators of the economy, pointing towards a less challenging environment for corporate profits ahead. Edward Smith, our Co-CIO of Rathbones Investment Management, explores what this means for our investment strategy.
Chance of US recession recedes, boosting markets
15 February 2024
Economic data has improved recently, yet it’s not all roses: pandemic-era savings are likely depleted and there are signs that businesses are cutting back on staffing hours. Still, we think the chance of a US recession in 2024 has fallen to roughly 50/50. We’re more optimistic about 2024 than we were a few months ago, and believe finding companies with a track record of protecting their profit margins and delivering consistent profits will be important in this year.