2024
Assessing investment opportunities and risks in 2024
It has been a wild decade for investors thus far.
Which begs the question, what does 2024 have in store?
On the latest episode of the Wealth Wisdom Podcast, I’m joined by Bob Swanson (SVP and Co-Head of Equities, CI Global Asset Management) to talk about what lies ahead for investors in 2024.
Could we see a return to “normalcy” (if there is such a thing), or will the 2020s continue to be a wild ride?
You can find the episode through these popular platforms.
Or, you can watch us on YouTube.
Hey, not everyone has the time or desire to listen to a 30-minute podcast. If you’re one of those people, make sure that you check out our episode highlights below.
What’s next for the Magnificent Seven?
The rise of the Magnificent Seven (Amazon, Apple, Google, Meta, Microsoft, NVIDIA & Tesla) was one of the largest stories for investors last year.
Bob Swanson actually took it one step further.
“The Magnificent Seven was the only story for the vast majority of the year last year,” he said on the podcast.
It’s hard to argue with Bob on that one. For the majority of 2023, these seven stocks carried the U.S. market, and they literally dragged the S&P 500 to a 24% return.
The S&P accomplished that stellar return despite the fact that a record 72% of companies underperformed the index, which was a record that showcased just how skewed last year’s returns were.
According to Bob, there were a couple of reasons why these stocks were so hot in 2023. He also talks about their potential impact moving forward.
History doesn’t repeat itself, but it rhymes
According to Bob, the next couple of years, beginning in 2024, could bear some semblance to the early 2000s.
Speaking of history's rhyming nature, I talk about how our portfolios held up really well in the early 2000s, due to strong diversification and investment in an asset class that was overlooked at the time.
Traveling overseas to unearth opportunities
We’ve been saying this for a while now, but there are intriguing investment opportunities all across the globe.
Bob mentions Japan as one country that investors should be paying attention to.
“The last time investors were interested in Japan, was back in 1990 when Japanese investors bought Pebble Beach Golf Course!”
He also mentions how some pharmaceutical companies and European countries currently look attractive, however he really sums up the investment landscape ahead in the clip below.
Geopolitical risks are heating up…
There’s one big caveat that stands in the way of 2024’s market optimism.
And no, we’re not talking about the U.S. election.
We’ve seen geopolitical tensions rise worldwide over the last two years. How will that affect the investment landscape in 2024?
There are always risks with investing, and geopolitical risks have been prevalent for decades. This is another key reason why a resilient portfolio needs to be diversified. Not only should you know put all your eggs in one basket, but those baskets need to be spread out globally.
Why it’s time to get back on track in 2024
It’s been a decade of disruptions thus far. I think it’s safe to say that’s not just from an investment standpoint, but from a personal one as well.
Disruptions often cause short-term pain, but as Bob notes in the clip below, it allows investors and portfolio managers to unearth opportunities that should pay long-term dividends.
Next Episode
Thanks again to Bob for channeling his 30+ years of investing insights into this 30-minute conversation.
Our next episode of the Wealth Wisdom Podcast will be tailored towards business owners and managers who are keen to ramp of the efficiency of their business operations. Kevin Armstrong from EOS Worldwide will join the show to talk about the work he does to help businesses of all shapes and sizes reach and surpass their potential.
Until next time,
Assante Sana
John Lawson (CFP®, CIM, FEA), Senior Wealth Advisor
Sana Family Office | Assante Capital Management Ltd.
