Investment Outlook: Investors look past soft landing
Our main thesis for 2024 is that positive drivers, a gradual decline in interest rates and a bottoming out of the economy will lay the groundwork for a broader stock market upturn, driven by former stragglers. But the economic soft-landing scenario is already largely discounted in the market, which limits its potential. Nevertheless, we recommend staying on the positive side with regard to risk assets, i.e. between neutral and overweight. “Our strategy since September 2022 has been to avoid being too defensively positioned and to ensure that our portfolios have good risk diversification.