Barclays have turned overweight on global equities vs. fixed income:
global equities set to outperform core fixed-income assets in 2024, expects mid-to-high single-digit equity returns in both the US and Europe
bond yields to stay elevated
threat of a global economic slowdown have fallen
equities holding up against a ‘higher-for-longer’ interest rate environment
a largely AI-driven rally in US mega-caps, along with strength in the U.S. economy.
“The downside risks to the world economy have diminished greatly. We think stocks will benefit from a fairly benign bottom to this business cycle and look through near-term earnings disappointments. “We now turn overweight (on) global equities over core fixed income.”
Via a note from Barclays on Thursday, Ajay Rajadhyaksha, global chairman of research at the firm.