Relative Value & Tactical Asset Allocation Q1 2024

Relative Value & Tactical Asset Allocation Q1 2024

Jun Jiang Jason Chen
JAN 04, 2024

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Key Takeaways

  • We are expecting a recession with slower growth, lower inflation, and more supportive monetary policy in H1 2024.
  • Government bonds are anticipating lower yields due to an easing of monetary policy.
  • We are maintaining our “up-in-quality” strategy for Q1 2024.
  • Current household balance sheets generally remain strong but with an expectation of weaker consumer fundamentals in 2024.
  • We believe the office sector has yet to hit bottom, while the farm economy remains resilient.
  • We continue to believe the future for fixed-income markets is brighter than equity markets.