Capital Markets Executive Summary
Global equity markets gained 8.1% during the quarter, led by a 10.4% rise in US large-cap stocks. Despite strong initial performances, markets retreated by 5.1% in early April amid rising US inflation and geopolitical tensions. In fixed income, the Barclays US Aggregate Index saw a 0.8% decline in
Strategic Asset Allocation View (7-years)
Over a seven-year forecast, the focus shifts towards intermediate-duration Treasury notes and new private investment strategies due to evolving market conditions. With U.S. equities and government debt expected to generate mid-single-digit returns, we adjust our allocation strategy to capitalize on
Macroeconomic Conditions
The US economy demonstrated robust growth, with a 3.4% annualized increase in Q4 2023 and continued strength into Q1 2024. We also explore economic performance in Europe and China, noting Europe’s recovery from near-recession and China’s Q1 GDP growth of 5.3%, which exceeded expectations.
