Asset managers hold an optimistic outlook for emerging markets and thematic investments in technology and pharmaceutical stocks in 2024, revealed Universal Investment’s annual survey.
The asset managers surveyed recommended increased stock quotas and greater investment in US securities.
Technology and pharmaceutical sectors dominate top investment themes for 2024 both nationally and internationally, each garnering 72.5%, emphasising the continued success of companies like Apple and Microsoft.
Infrastructure stocks and cybersecurity-focused companies are also seen as promising, with 47.5% and 45% of experts recommending them. Only 16% of participants view climate change as a significant threat for 2024.
The majority of experts shared they anticipate a declining German economy, with 10.3% foreseeing a depression and 43.6% predicting a recession. For the entire eurozone, over half of the respondents expect stagnation. In the USA, expectations vary between recovery and stagnation.
Cautious optimism surrounds Asia, particularly China, with over 40% anticipating growth of more than 2%.
Regarding the Dollar-Euro currency pair, 42% expect a further decline of the Euro against the U.S. Dollar, while 24% anticipate a strengthening.
Unresolved conflicts are identified as the primary danger to capital markets and economies next year, according to 74.4% of experts.
For specific investment recommendations for private investors in 2024, participants suggested allocating about 55% in stocks (46% in stocks from industrial nations and 9% in emerging market stocks).
On the bond side, they recommended a steady 27% bond quota (23 % in bonds from industrial nations and 6 % in bonds from emerging markets). Real estate, gold & precious metals, and other assets, including industrial metals and cryptocurrencies, should make up approximately 4%, 7%, and 2%, respectively.
This finding represented a nearly 12% point decrease in the equity quota compared to the previous year due to the turnaround in interest rates.
For 2024, investment recommendations favour the USA, followed by Europe, Japan, and emerging countries excluding China.
In 2024, predictions on private investors’ views on sustainable investments vary. While 50% anticipate steady demand, 20% foresee a rise, 17.5% predict a decline, and 10% anticipate a complete collapse.
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