Wealth Outlook 2024 Slow then grow Investing in the markets’ big reset Wealth Outlook 2024 Slow then grow Investing in the markets’ big reset INVESTMENT PRODUCTS: NOT FDIC INSURED · NOT CDIC INSURED · NOT GOVERNMENT INSURED · NO BANK GUARANTEE · MAY LOSE VALUE Wealth Outlook 2024 Foreword By Andy Sieg, Head of Wealth 3 Our outlook Portfolio views Unstoppable trends Regional outlook Taking advantage of the markets’ big reset 5 Slow then grow 10 Geopolitics and elections: assessing risk in 2024 24 Core portfolios could be ready to shine 34 Alternative investing in 2024 41 Peak rates equals peak income: extend duration 47 Opportunistic Our top 10 high conviction potential opportunities 54 Investing with and in unregulated financial companies 71 How generative AI might reshape every sector 77 AI-propelled digitization in 2024: five areas of focus 82 OPEC's unlikely role in the energy transition 86 For investors, healthcare innovation is on sale 92 The implications of G2 polarization on global technology 98 Asia: faster growth for 2024 as headwinds recede 106 Europe: a slow recovery, with stronger equity returns later into 2024 115 Latin America: potential opportunities amidst 120 low valuations North America: an emerging set of new opportunities 126 Glossary 106 Foreword Andy Sieg Head of Wealth Welcome to Wealth Outlook 2024: Slow then Grow, Investing in the Markets’ Big Reset, Citi Global Wealth Investment’s annual report that presents our assessment of the global economy and the potential opportunities that follow for the coming year and beyond. As we enter 2024, we are faced with several conundrums as investors. Given how high interest rates are, how has the world economy avoided recession? Is a downturn imminent? With all of the geopolitical challenges, what should we consider when investing for the future? The Office of the Chief Investment Strategist at Citi Global Wealth, led by our Chief Investment Officer, David Bailin, has assembled this comprehensive analysis of potential opportunities and risks for this unique moment in time. It is clear that there is much to be optimistic about as the world economy returns to normal after the pandemic. We believe both bonds and stocks are attractive investments, making balanced portfolios valuable to investors. For qualified clients, alternative investments are seeing attractive entry points, as valuations are more modest now than they were during the “free money” period that just passed. The team also believes in potential opportunities in specific regions, industries and trends, such as tech supply chain infrastructure and investments in economic security. One risk for long-term investors can be the inclination to hold too much cash. We expect that rates will fall over the next 12-24 months and that returns on cash will drop rapidly. The Fed forecasts that its key pol...
