Interest is back!

For many investors, last year’s development is a blessing, as obligations can now be serviced relatively easily. Other investors, however, are now facing another year of potentially negative real returns for bonds after the extraordinarily high losses of 2022. Although at least equities were able to make up a good part of the losses
of the previous year and approach the highs of 2021, a certain fatigue now seems to be setting in.

The reason: fears that the dampening effect of interest rate hikes could possibly lead to an economic slowdown or even a recession. This, on the other hand, means uncertainty when it comes to corporate profits.

Concerns about China’s growth also remain high due to the ongoing difficult situation on the real estate market there.

What does this environment mean for investors? What returns do the various asset classes offer and are interest-bearing securities really as attractive again as is generally rumored? What role do alternative investments play? And can sustainable investments make up for their negative performance in 2022?

In our Capital Market Outlook 2024, we explain EB-SIM’s return forecasts for the next 12 months. Among other things, we take into account the potential impact of monetary policy decisions, the development of corporate earnings, the dynamics of emerging markets and the changing landscape of corporate bonds.

Our aim is to provide you with a clear and well-founded overview of the opportunities and risks of the coming year. In doing so, we want to give you the tools you need to make informed investment decisions yourself. Let us now dare to look ahead together with realism and confidence.