Coming up for air Coming up for air\images\insights\video\whale-humpback-playing-small.jpg February 29 2024 March 1 2024

Coming up for air

The end of rolling recessions bodes well for risk assets.

Published March 1 2024
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Video Transcript
Question: How might the economy react as conditions normalize?
Damian McIntyre: The last two years we saw the market in a rocky economic landing. We meant that the economy was going through a rolling recession with various sectors of the economy going through recessions at different times. Therefore, on the surface it seemed that the market was doing well and the economy was doing well. However, underneath, certain sectors were performing very poorly compared to others. As we head into 2024, we find ourselves in an economic environment where GDP is strong and positive, the labor market is tight and consumers continue to experience wage growth increases. More importantly, companies have spent the last two years focusing on profitability and increasing their earnings. As we head into this year and beyond, we would expect company earnings to continue to grow at a more favorable pace. And as Jerome Powell eventually cuts interest rates, this would create a very favorable economic environment for risk assets.
Tags Equity . Markets/Economy .

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