Director of Global Macro Research Francis Scotland and Senior Vice President – Investment Specialist Katie Klingensmith discuss how their expectations for the macroeconomic outlook in 2024, including the potential for a material drop in inflation, may shape opportunities in fixed income. In this podcast, they cover:
- What is the outlook for recession, and can the U.S. economy avoid a hard landing?
- Following the extreme dislocations caused by the pandemic, what is left to normalize? Will inflation prove to be transitory after all?
- Fixed income investors have endured a wild ride. What does the scenario look like for bonds in 2024?
The biggest surprise could be how low inflation gets. If the Federal Reserve leans into the expected inflation story and normalizes the Treasury curve sooner and faster than the market expects, 2024 may even go out with strong growth and low inflation.
Press play below to listen to the full commentary.
Groupthink is bad, especially at investment management firms. Brandywine Global therefore takes special care to ensure our corporate culture and investment processes support the articulation of diverse viewpoints. This blog is no different. The opinions expressed by our bloggers may sometimes challenge active positioning within one or more of our strategies. Each blogger represents one market view amongst many expressed at Brandywine Global. Although individual opinions will differ, our investment process and macro outlook will remain driven by a team approach.