Macro views

Investment Outlook: Loomis Sayles

July 16, 2024 - 10 min read

Ongoing expectations of artificial intelligence’s (AI’s) transformative impact on the global economy could bolster investor sentiment during the next 6 to 12 months, according to Loomis, Sayles & Company’s Global Macro Strategist, Credit, Craig Burelle. What sectors may benefit, along with other macroeconomic drivers are analyzed.

Highlights

Macro Drivers: US core Personal Consumption Expenditure (PCE) inflation is expected to average just under 2.5% for the first time this cycle during the third and fourth quarters. After that, it should drift slowly toward 2.0% driven by less shelter and housing inflation.
Corporate Credit: Credit market yields are near multi-year highs and could indicate good value. Election-driven volatility could present opportunities to add credit exposure at wider spreads.
Global Equities: Positive trends across equity markets are likely to continue so long as earnings expectations remain robust. The US, Japan and emerging markets may have the potential to produce double-digit year-over-year earnings growth for 2024.
Currencies: US dollar strength is likely to subside once the Fed begins to ease policy. Foreign exchange exposure to Latin America, particularly Brazil, Colombia, and Chile appear favorable.

Resource

Loomis Sayles Investment Outlook

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