Citi Wealth highlights four unstoppable trends, seven investment opportunities

Citi Wealth highlights four unstoppable trends, seven investment opportunities
How is the firm positioning portfolios for the second half of 2024.
JUN 07, 2024

As the midway point of 2024 approaches, Citi Wealth has provided insights into how it is positioning portfolios for the months ahead.

The firm’s mid-year Wealth Outlook suggests that the economy, and inflation slowing to 2.5% by year-end, will allow the Fed to ease its monetary policy and focus on maintaining economic expansion. However, global headwinds including supply chain disruption and geopolitics remain.

The U.S. presidential election, the report says, is unlikely to change the direction of the global economy and markets.

“We are focused on building resilient core portfolios with global diversification across asset classes,” said Steven Wieting, chief economist, chief investment strategist and interim chief investment officer for Citi Wealth. “We are encouraging our clients to stay fully invested and to complement their portfolios with high-conviction opportunistic investments.”

Markets are expecting near-term expansion and have priced this in already, so investors may find investment opportunities in U.S. small-and mid-cap growth equities along with some developed and emerging markets.  

There could also be income from intermediate, high-quality U.S. dollar bonds and sees potential in private equity, real estate and hedge funds for qualified and suitable investors.

Among the opportunistic investments the firm anticipates are:

  1. Semiconductor equipment makers
  2. Medical technology and life science tools firms
  3. Defense contractors
  4. Western energy producers
  5. The Japanese yen and yen-denominated tech and financials
  6. Yield curve normalization
  7. Structured credit for qualified and suitable investors
UNSTOPPABLE TRENDS

Citi Wealth’s report also highlights four ‘unstoppable trends’:

  1. AI – with growth potential in areas such as infrastructure, robotics and automation, drug discovery, and cyber security.
  2. Energy – the transition to clean energy including those firms driving renewable energy tech.
  3. Healthcare – helped by the aging population and its wealth.
  4. G2 polarization – as the U.S. and China rivalries continue to intensify, global trade, geopolitics, and many investments will be reshaped.

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave