There are 3 item(s) tagged with the keyword "Long-Term Outlook".
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The macroeconomic outlook suggests moderating growth and controlled inflation. However, uncertainty has risen post-US election, with the new administration's policy agenda still unclear. Proposed trade tariffs may initially boost US inflation but could dampen growth modestly. Global impacts may skew negative, widening divergences between the US and Europe, China, and others.
Corporate bonds performed well in 2024, but government bond volatility dampened overall fixed income returns. Central Banks fell short of market rate-cut expectations, with resilient economies, especially in the US, and political upheaval fueling turbulence. Will 2025 bring similar challenges?
Investor allocations to bonds have been low in recent years with many investors preferring to hold cash or money market funds instead. In the period of low/rising bond yields and high deposit rates, this made perfect sense. Now, as we enter the next phase of the interest rate cycle, this is no longer the case.
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