Key convictions 4Q24

The global economic outlook for fixed-income investments is currently optimistic, with central banks beginning to ease policies and inflation showing signs of moderation. This environment supports the potential for selectively identifying attractive yields, despite tight spreads. Emphasizing higher-quality assets is crucial to maintaining resilience against potential economic headwinds, as strong fundamentals support exposure to various spread sectors.

The 2024 US presidential election introduces significant uncertainty, with no clear frontrunner and fluctuating market indicators. This unpredictability could lead to shifts in fiscal policies and regulatory frameworks, influencing market behavior. As such, maintaining a well-diversified portfolio is a prudent strategy to adapt to various potential election outcomes.

Growth prospects remain aligned with moderated inflation and easing monetary policies, creating a favorable environment for fixed-income investments. However, geopolitical factors and the upcoming US election pose potential risks that require careful monitoring. A balanced approach that focuses on quality and diversification can help navigate these challenges effectively.