Key Highlights from LGT Wealth Management Market Outlook for 2024 and Beyond

Last week, Melbourne Capital Group, in collaboration with our partner LGT Wealth Management (LGT), hosted an insightful market outlook session. We welcome Olivia Wingrove, Portfolio Manager at LGT to provide her key takeaways:

Resilience in Global Markets

There has been an unexpected strength of global equity markets and the economy, which performed well despite high interest rates and ongoing geopolitical tensions. Central banks successfully implemented a soft landing, reducing inflation without a severe slowdown in growth. The tech sector, emerging markets, and alternative investments such as gold were identified as key performers. October posed challenges for the markets, but LGT projected further economic deceleration and volatility in the near term.

US Market Trends and Impacts of Trump’s Policies

The US market demonstrates robust consumer activity and strong corporate earnings. The discussion touched on the potential impact of Trump's policies, including deregulation, increased military spending, and tax cuts that may benefit companies but raise government debt. While these policies could support sectors like energy and financials, they also bring risks such as inflation and trade tensions. LGT emphasised the importance of diversification, including investments in smaller-cap companies and equal-weighted indices, to mitigate risk.

China and Asia: Opportunities and Risks

China’s post-pandemic recovery has been slower than expected due to insufficient fiscal stimulus and underwhelming market performance. However, there is long-term potential of Chinese markets, particularly in areas like artificial intelligence and renewable energy. The broader Asia region remains a bright spot, benefiting from supply chain diversification and a young, skilled workforce. Countries such as Vietnam, Thailand, and India are positioned to capitalise on this shift. Japan also stood out for its corporate reforms, including shareholder-focused initiatives and buybacks.

Portfolio Management Strategies and Market Insights

LGT’s comprehensive portfolio strategy advocates for balanced exposure across equities, bonds, and cash. They highlighted the advantages of equal-weighted indices, which have historically outperformed market-cap-weighted ones, and cautioned against overexposure to top-performing sectors like US technology. The team also noted positive cash rates and the flexibility offered by a diversified investment approach.

Investment Proposition from LGT Wealth Management

LGT's investment proposition highlights a unique ownership structure and market-leading capabilities. They detailed solutions including model portfolios, passive and sustainable options, unitised funds, and bespoke portfolio management services. Olivia closed off the presentation by emphasising the importance of diversification and risk awareness, particularly in navigating geopolitical uncertainties.

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Legal Information

LGT Wealth Management UK LLP is authorised and regulated by the Financial Conduct Authority (FCA). Our registration details are set out in the FCA Register: Firm Reference No. 471048, www.fca.org.uk/register. Registered in England and Wales: OC329392. Registered office: 14 Cornhill, London, EC3V 3NR.

This document is for information and illustrative purposes only and is for use of the recipient. It is not to be reproduced, copied or made available to others. This document is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or other specific product, or participate in any investment (or other) strategy. You are recommended to seek advice concerning suitability of any investment from your investment or other professional adviser. Investors should be aware that past performance is not an indication of future performance and the value of investments and the income derived from them may fluctuate and you may not receive back the amount you originally invested. Not all investments mentioned are regulated by the FCA.

When we provide investment advice it is on the basis of a restricted approach, that is to say whilst we review and advise on retail investment products from the whole of the investment market and can also advise you on direct investments, we will not consider your wider financial planning and pension requirements, unless you wish us to do so, when we will refer you to one of our wealth planners.

The information and opinions expressed herein are the views of LGT Wealth Management UK LLP and are based on current public information we believe to be reliable but we do not represent that they are accurate or complete and should not be relied upon as such. Any information herein is given in good faith, but is subject to change without notice. No liability is accepted whatsoever by LGT Wealth Management UK LLP, employees and associated companies for any direct or consequential loss arising from this document.  

LGT Wealth Management UK LLP is a limited liability partnership registered in England & Wales. Registered Office: 14 Cornhill, London EC3V 3NR. Registration number OC 329392. LGT Wealth Management UK LLP is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.

LGT Wealth Management Jersey Limited is incorporated in Jersey and is regulated by the Jersey Financial Services Commission in the conduct of Investment Business and Funds Service Business. Registration number: 102243; https://www.jerseyfsc.org/industry/regulated-entities, Registered office: 30-32 New Street, St Helier, Jersey, JE2 3TE.

LGT Wealth Management US Limited is a registered Company in England & Wales, registered number 06455240. Registered Office: 14 Cornhill, London EC3V 3NR. LGT Wealth Management US Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom and is a Registered Investment Adviser with the Securities & Exchange Commission in the United States.

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If you've read this far and would like to explore the full insights from our presentation or have any questions on the key market trends discussed, request the full presentation here or click link below. We're here to help you navigate the evolving landscape and provide tailored advice for your investment strategy.