Investment Outlook: Loomis Sayles

With the Federal Reserve prepared to lower rates in 2024 as core inflation lessens, and other larger economy central banks expected to follow shortly after, economic growth could continue for some time. What it means for asset classes and sectors is analyzed.

Highlights

  • Macro Drivers: US corporations are showing leadership, while global market fundamentals look set to bottom soon and improve throughout 2024.
  • Corporate Credit: With little expectations of a default wave, Loomis believes that the potential to earn over 7.5% on US high yield credit could be an opportunity for equity-like returns.
  • Currencies: The euro and pound sterling may struggle to make significant gains relative to the US dollar. The Fed will most likely be easing first but the European Central Bank and Bank of England should cut rates soon after, believes Loomis.
  • Asset Class Outlook: US securitized assets within credit and US growth equity exposure is preferred, but a rally can broaden globally.

Resources

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Investors should fully understand the risks associated with any investment prior to investing.

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