Macro outlook: Catalysts, confidence & cuts
March 31, 2024
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1 min read
Portfolio Manager Jack Janasiewicz and Investment Strategist Brian Hess offer their thoughts on US growth, the strength of the consumer, international markets, inflation, the Federal Reserve, and equity market themes.
- US growth remains robust, powered by core demand from consumers and a strong labor market.
- Both the equity market and the economy are up, with markets reaching new highs.
- The Fed has finished hiking rates, and revised its GDP growth projection up to 2.1% at the March meeting.
- All this has created a positive backdrop for corporate earnings.
- International growth has been out of sync with the US, with China struggling and Europe in the middle.
- Germany is no longer the European growth engine, but the most recent eurozone data has come in stronger than expected.
- In the US, slightly higher inflation readings in January and February this year may be seasonal effects. Inflation didn’t rise in a straight line and may not fall in a straight line either.
- Concerns about the Magnificent 7 stocks and a market bubble may be overblown.
- There may be some opportunities ahead in small cap stocks and selected emerging markets.
- Many of these themes are reflected in the Natixis multi-asset hybrid model portfolios.
- This material is provided for informational purposes only and should not be construed as investment.
