2024 Mid-Year Market Outlook | Choreographing Your Next Move
Choreographing Your Next Move in a Resilient MarketChoreographing Your Next Move in a Resilient Market

Choreographing Your Next Move in a Resilient Market

Mid-Year Market Outlook

Opening Note

Foreword

When we entered 2024, we outlined reasons for both optimism and caution. As we progress into the second half of the year, our market outlook remains balanced, even as the underlying factors for optimism and caution have evolved since.

The global economy demonstrated resilience in the first half of the year, with slower but better-than-expected growth, supported by strong labour conditions and robust consumer demand. Consumers continued to spend, while wages continued to rise. At the same time, the manufacturing outlook brightened as global trade recovered.

The economy’s resilience instils confidence in its ability to withstand headwinds such as high interest rates, persistent inflation and geopolitical risks. Economic growth and strong corporate fundamentals will drive financial market performance over the next six months, even with high borrowing costs. Furthermore, increasing adoption of generative artificial intelligence (AI) is starting to transform businesses, potentially benefitting companies outside of the AI investment cycle.

However, we must also note that the resilient economy and strong labour market have contributed to inflation staying persistent. Although inflation is gradually declining, it remains above targeted levels, preventing some major central banks from easing monetary policy and cutting interest rates. Geopolitical tensions, including two ongoing wars, linger unresolved, while the upcoming United States presidential election injects additional uncertainty and warrants caution.

In the second half of 2024, it is crucial to remain invested to stay ahead of inflation. Diversifying your portfolio is key to seizing opportunities as they arise, and to withstand periods of volatility during unexpected market events. Enhance investment income by complementing bond funds and investment grade bonds that provide regular income, with quality dividend stocks that can also offer potential capital growth in the long term. As always, consider risks before potential returns.

Our market insights and strategies are designed to guide you towards achieving your financial objectives in this dynamic investment landscape. By working together, you can build a resilient portfolio that not only aligns with your goals but also helps you choreograph your financial future.

Elaine Fan
Managing Director & Country Head
Personal Financial Services
UOB Malaysia[ MOY24, Market Outlook, MOY 2024 ]

Key Considerations and Strategy

 

Key Considerations and Strategy
 

Source: UOB PFS Investment Strategists
[ MOY24, Market Outlook, MOY 2024 ]

Additional Resources

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Credits

Credits
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Managing Editor
  • Winston Lim, CFA
    Singapore and Regional Head,
    Deposits and Wealth Management
    Personal Financial Services
Editorial Team
  • Abel Lim
    Singapore Head,
    Wealth Management
    Advisory and Strategy
  • Michele Fong
    Head, Wealth Advisory and Communications
Editorial Team (cont’d)
  • Tan Jian Hui
    Investment Strategist,
    Investment Strategy and Communications
  • Low Xian Li
    Investment Strategist,
    Investment Strategy and Communications
  • Zack Tang
    Investment Strategist,
    Investment Strategy and Communications

  • Sarah Sng
    Intern

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