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Equity markets are heading for a ‘choppy ride’ in the year ahead as the higher yield market takes hold, Managing Partners Group (MPG), the international asset management company, believes.
It is predicting rate cuts of 1.5% and 2% over the year ahead in the US and a rate cut of 0.5% in the UK in the first quarter and says the Bank of England has the scope to cut rates to 4% by the end of 2024. The yield driven market worldwide will temper performance expectations for fixed income funds and those aiming for double digit performance will need to increase exposure to corporate bonds, and other higher yielding securities, MPG predicts. Alternative asset classes are also set to benefit from increased diversification as investors look for reasonable returns, the...
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