Global Market Outlook-Adapting to shifting winds

Group 1: Macroeconomic Outlook - Major central bank rate cuts mark a turning point for investors, shifting focus towards supporting growth[24] - There is a 55% chance of a US economic soft landing and a 25% chance of a no-landing scenario in the next 12 months[24] - The Fed is expected to cut rates in H2 2024, influenced by slowing rents and softening labor markets[24] Group 2: Investment Strategy - Overweight equities over bonds and cash, favoring US and Indian equities[24] - Balanced foundation allocations comprising equities, bonds, and alternative assets are likely to outperform income-oriented strategies[24] - Gold and Emerging Market (EM) USD bonds are recommended as diversifiers[24] Group 3: Performance Review - The Balanced allocation has risen 6.7% year-to-date, outperforming income-oriented strategies[24] - The Multi-Asset Income (MAI) model allocation has delivered a 4.4% YTD return, benefiting from strong corporate earnings and a broadening equity rally[75] - Gold has risen 14.4% YTD, driven by a tight demand/supply balance rather than falling bond yields[49]