Institutional investors have a positive outlook for the economy, CEOs are not convinced

Institutional investors have a positive outlook for the economy, CEOs are not convinced
Global survey of business leaders and portfolio managers reveals split opinion.
DEC 21, 2023

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.

M&A OUTLOOK

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."

Latest News

Fintech bytes: Envestnet reaffirms $1B RIA commitment with Tamarac tech investment
Fintech bytes: Envestnet reaffirms $1B RIA commitment with Tamarac tech investment

Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.

RIA moves: Maridea acquires multigenerational practice in Pennsylvania debut
RIA moves: Maridea acquires multigenerational practice in Pennsylvania debut

Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.

Private equity eyes 401(k) plans, but fees remain a hurdle
Private equity eyes 401(k) plans, but fees remain a hurdle

Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.

IRS floats proposal ending tax breaks for schools that weigh race
IRS floats proposal ending tax breaks for schools that weigh race

Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.

Trust over tech:  The hidden signal of stock success in the AI era
Trust over tech: The hidden signal of stock success in the AI era

Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income