Now that we’re full steam ahead into 2024, should investors have reasons for optimism about the overall economy and the financial markets? I believe the answer is yes, with some important caveats.
Based on recent economic data, I believe the worst of inflation is well behind us, both here in the U.S. and globally. The financial markets are now anticipating when the Fed will start its (at least) three forecasted quarter-point rate cuts this year. Does that mean we’ll return to the ultra-low-rate environment we enjoyed for so long prior to 2020? I don’t think so — a moderate level of inflation will be with us for the foreseeable future.
