What does the rest of 2024 have in store?

by Greg Smith, Head of Retail at Devon Funds

By way of a quick recap. It certainly wasn’t smooth sailing last year, with investors fretting for much of the year over high-interest rates and a possible recession, notions that were put to one side as inflation prints, economic data and central bank meetings playing out favourably. A regional banking crisis in the US, the collapse of one of Europe’s biggest banks, and another war, this time in the Middle East, were also dismissed quickly by markets. The technology sector, driven by the “Magnificent 7”, dominated proceedings, with the blue-sky potential of AI a common thread. 

Several members of the “M7” have continued to make their presence felt in the early throes of 2024. Microsoft, Meta and Nvidia have hit record highs. It’s not all about super-tech though - older-fashioned names such as Caterpillar, MasterCard and Visa (as well as Uber) have all seen their share prices hit record levels. 

Meanwhile, economic data continues to point to the resilience of the economy. US job openings rose last month as did consumer confidence, while home prices have also pushed higher. Strength in the world’s largest economy was also central to the IMF upgrading its forecast for global economic growth this year to 3.1%.