With mixed data from major economies and the continued risks from geopolitical issues, there is little consensus about the outlook for 2024.
This is clear among business leaders and portfolio managers at institutions managing a combined $3.4 trillion of company and portfolio value, who reveal differing views of what’s ahead in a survey by global CEO advisory firm Teneo.
While investors are almost unanimous in their upbeat view of the economic climate, with 94% expecting improvement in the first half of 2024, more than half (53%) of CEOs are bracing for things to get worse.
Geopolitics is in the minds of both groups of respondents, who are considering the strategic importance of China, among other matters. There is concern about how the U.S. presidential election will impact business with every U.S. based CEO respondent making some type of change to business strategy in anticipation of the outcome.
Despite some key differences, investors and business leaders agree on some matters such as AI. Both groups (80% of all respondents) are making investments in the technology a priority. However, investors think CEOs may be underestimating how AI may disrupt their workforces.
Mergers and acquisitions are another area of broad agreement with 68% of both CEOs and investors expect a sizable M&A uptick in 2024 – following one of the worst years in 2023 - despite tougher regulatory oversight and higher cost of capital.
"CEOs and institutional investors continue to navigate an incredibly volatile and fast-changing operating environment around the world," said Paul Keary, CEO of Teneo. "Every business leader has reason for concern about the year ahead, yet there is a clear desire to stop simply reacting and to start seizing opportunities, as evidenced by strong predictions for a recovery in M&A in 2024."
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
