Citi Wealth Releases Mid-Year Outlook 2024: Renewed Growth, New Challenges

NEW YORK - Today, Citi Wealth released its mid-year Wealth Outlook for 2024 - Renewed Growth, New Challenges. The report offers an updated analysis of the global economy, markets and geopolitical landscape for the remainder of 2024 and beyond.

At the beginning of 2024, Citi Wealth outlined a year of recovering corporate profits and slowing U.S. employment. While the global economic expansion is broadening across regions and industries, the report notes that the Fed will begin to ease monetary policy and shift its focus to sustaining the expansion. Citi Wealth expects U.S. inflation to ease to 2.5% by the end of 2024.

Although investors are likely looking ahead to the U.S. election in November, the report states that it is unlikely to change the direction of the world economy and markets. The risks outlined include potential supply chain shocks, tariffs and unpredictable geopolitical flareups.

"We are focused on building resilient core portfolios with global diversification across asset classes," said Steven Wieting, Chief Economist, Chief Investment Strategist and interim Chief Investment Officer for Citi Wealth. "We are encouraging our clients to stay fully invested and to complement their portfolios with high-conviction opportunistic investments."

With markets having priced in continued near-term expansion, Citi Wealth anticipates potential investment opportunities in areas such as U.S. small-and mid-cap growth equities, some developed and emerging markets and defensive growth in healthcare. Citi Wealth believes clients can seek income from intermediate, high-quality U.S. dollar bonds and sees potential in private equity, real estate and hedge funds for qualified and suitable investors.

Opportunistic Investments

1. Semiconductor equipment makers
2. Medical technology and life science tools firms
3. Defense contractors
4. Western energy producers
5. The Japanese yen and yen-denominated tech and financials
6. Yield curve normalization
7. Structured credit for qualified and suitable investors

Citi Wealth also outlines its unstoppable trends in the report, which are long-term forces that are transforming how we live and work.

Unstoppable Trends

• AI-propelled digitization: The AI revolution is still only in its early stages. Citi Wealth likes AI infrastructure and select AI users such as robotics and automation, drug discovery, cyber security, grid constructors and power generators near data centers.
• Energy transition: The clean energy transition is vital to prosperity and wellbeing. Citi Wealth favors renewable energy technology specialists, those with energy efficiency enabling AI strategies, and their beneficiaries, publicly traded and private.
• Healthcare: Aging populations, growing wealth and technological advances could drive healthcare returns over the long term. Short-term valuations are attractive; Citi Wealth favors exposure via specialist actively managed strategies.
• G2 polarization: The U.S.-China (G2) strategic rivalry is set to intensify, reshaping global trade, geopolitics and many investments. Citi Wealth favors the likes of tech supply chain diversification beneficiaries in the U.S. and China.

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About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

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