Equity Market 2024 Outlook | A Manager Conversation with Ninepoint’s John Wilson

In this 2024 Equity Market Outlook, John begins by reflecting on the market in 2023 in comparison to Ninepoint’s forecasts and predictions this time last year. The major trends offered by last year’s environment revolve primarily around the difficult inflationary and rate environment, lower bond values, lower PE multiples, and overall lower earnings across the equity market. John discusses some reasons why higher rates didn’t slow the economy in 2023, provides a look at the housing market in the face of the rate environment, and gives commentary on wage growth.

John then moves into Ninepoint’s forecasts for the upcoming year, some of which include:

  • A forecast that the current strong economy will cool gradually over the course of 2024
  • An expectation that inflation will remain sticky, above 2%
  • A prediction that there will be fewer Fed cuts than expected, and later on in the year than suggested.

It’s notable that the Canadian market outlook appears to differ from the US for a number of reasons, such as:

  • The Canadian housing market will feel the impact of higher rates sooner than the US due to shorter and variable mortgage terms, as well as our population boom in 2023
  • Canada is already in a “per capita” recession, due to our population growing faster than our GDP
  • There is a likelihood that the BoC will cut rates sooner and more intensely than the Fed in 2024

John goes on to provide a brief outlook on the Energy Sector in 2024 according to Eric Nuttall, Partner and Senior Portfolio Manager of the Ninepoint Energy Fund and Energy Income Fund.

To wrap up the outlook, John outlines the three main risks to the equity market in 2024, according to the Ninepoint Partners investment team: inflation surprisingly showing an upside, geopolitical conflict in Gaza, Ukraine, and Taiwan, and U.S. domestic political strife. Watch the full presentation below.

Any views or expressions of an opinion is subjective to the speaker and does not constitute a recommendation. Sightline Wealth Management cannot guarantee the accuracy or timeliness of such information 

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Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds. 

Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.

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