With a new year on the horizon, you may be thinking about making some changes when it comes to your investments.
What those changes involve is, of course, a very personal decision. But how do you make these decisions?
Some investors like to see what the experts are predicting before they do anything new. With that in mind, we’ve rounded up some expert predictions for investing in 2024 for you to read through.
Could bonds be on the up?
Morningstar analysts believe that bonds are currently an attractive investment. They state that interest rate rises have led more investors to choose bonds and, as a result, prices were boosted in 2023.
They state that a significant increase in yields – higher than inflation in the UK – has made bonds more attractive than some other asset classes. They also warn, however, that corporate bonds can be a risky choice in times of recession.
Gold and silver set to shine?
Deutsche Bank has increased price targets for both gold and silver for 2024. They predict that gold will increase so long as the US Federal Reserve begins its easing cycle mid-year, and as long as central banks continue to buy gold. They also believe that geopolitical events – like the elections in the US and Taiwan – could have a positive impact on gold prices.
Silver, they say, will increase in price towards the end of 2024. Its use in photovoltaic technologies as well as in semiconductors, they believe, will help to boost its performance.
The biggest risks…
The results of a survey by Natixis Investment Managers reveal that investors believe the biggest threat for 2024 is geopolitical risks. The same survey shows that 67% of UK investors believe that a recession is inevitable – but only 2% hold a portfolio that they deem recession-proof.
Responses were split when it came to predictions about inflation: 40% expect it to continue to be high, with a further 40% expecting falls. AI splits opinion in a similar way: 63% view it as a potential geopolitical risk, while 77% state that it could well bring new investment opportunities.
What do you see as the biggest opportunities and risks for the year ahead?
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