Amundi urges waiting until the second half of 2024 to consider equities

Fund manager Amundi believes that investors will have to wait until the second half of next year to consider European equities and argues that sovereign or corporate bonds are the preferred asset class for the beginning of next year.

In an outlook report for 2024, Amundi highlights that greater volatility is expected in 2024 mainly due to excess liquidity and points out that investors should look for opportunities through companies positioned in matters related to the energy transition or chain relocations. . of supply.

Amundi understands that “fixed income is key in a context of rates at maximum”, while in equities investors must remain “defensive” and focused on the sustainability of dividends, quality and reducing volatility.

emerging markets

In relation to emerging markets, for the beginning of the year Amundi shows a preference for fixed income in hard currencies and then adds debt in local currencies and believes that emerging equities should take advantage of a rebound in profits, especially in Asia.

The manager anticipates a fragmented outlook in 2024, with global growth gradually weakening and inflation more moderate, although it will remain above central banks’ targets until the end of the year.

It considers that next year there will be a growth in the global Gross Domestic Product (GDP) of 2.5%, with an average increase in developed markets of 0.7% compared to 3.6% in emerging markets.