The 7 investment trends for 2024

In 2023, the stock market plummeted, dragging bonds along with it. Even cryptocurrencies crashed, with the two main ones, Ethereum and Bitcoin, losing over 60% of their value since the beginning of the year. Inflation, recession, and war, but not only that: 2022 was marked by significant cryptocurrency crises and failures.

In such a complex and volatile environment, making the right investments in the right places can make a significant difference. What to invest in 2024? How will the stock market fare, and what can we expect? Let’s answer these questions by examining the main investment trends for 2023 and 2024.

1. Inflation Won’t End in 2023 Regarding inflation, most estimates are downward. A peak is likely at the beginning of the year, followed by a significant decline in spring/summer. However, despite the slowdown in price increases, it’s still too early to determine whether the inflation trend is truly descending and whether central banks will ease monetary policy and lower interest rates after recent aggressive hikes. On December 14th, the Fed announced a new 50 basis point rate hike, bringing rates to 4.25%-4.50%.

According to Bank of America Securities, the Fed might increase rates by another 75 basis points in early 2023, and the second meeting of the year, scheduled for March 21-22, might be the first without a rate increase in over a year.