Our Asset Allocation Chart Pack has been updated with the latest data and our analysis of recent developments.
We expect “safe” assets to rally a bit more over the next couple of years, largely informed by our belief that investors are still underestimating how quickly and/or how far many central banks will cut interest rates over 2024-2025. That backdrop of falling yields, alongside our view that global growth will pick up, informs our strong returns forecasts for “risky” assets over 2024-25.
In particular, we think equity markets will notch up large returns as they benefit from growing excitement around artificial intelligence (AI). This would, in our view, be most of a tailwind for stocks in the US and other developed markets (DMs).
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