Investors are looking forward to 2024 with the expectation of an even better year as inflation is on a downward trend, and lower interest rates are finally on the horizon. In its most recent meeting, the US Federal Reserve announced it is done with rate hikes and it will look to cut interest rates in the next year, and enthusiasm has pushed US stock exchanges indices DJI30 and NASDAQ 100 to new all time highs. The markets’ optimism has also spread to Romania, with the BET index also reaching new record highs.
The lower interest rates outlook and return to earnings growth for companies are seen to be the key drivers of stocks in 2024. It is possible to witness a rotation from US and tech to Europe and emerging markets, with interest in real estate and small caps to pick up later. While Fed chair Jerome Powell mentioned that talk about cutting rates was "clearly a topic of discussion" for policymakers at the latest FOMC meeting, in Europe the ECB President Christine Lagarde cautioned against bets on imminent cuts to interest rates. However, investors seem confident that the cuts are coming, particularly with the latest data showing an easing of price pressures in the eurozone.
Most retail investors now expect that the US stock markets will perform best in 2024. According to a poll carried out on the eToro social investment and trading platform at the end of November 2023, 52% of respondents are pointing to the US as the top performer of this year, while 25% are looking at China and 16% believe it will be Europe. When asked about sectors, 59% of respondents continue to believe in technology, already one of the best performers last year, while 20% are looking toward the financial sector that did not perform well in 2023. Energy will be in focus for 18% of respondents. But 2024 is a complicated year with geo-politic tensions and elections all over the globe including Europe and the US that can bring surprises and volatility in the markets.
After a sustained rally in the last quarter of last year and 2023 highest return, crypto is believed to be the best performing asset for 2024 by 59% of retail investors, the polls show. stocks are seen on top by 32% and commodities by 7% of investors. These views about crypto are translating into the best performing investment themes for 2024, with 56% of investors naming crypto assets, followed by disrupting tech (28%) and clean tech (13%).
2023 was a strong performer, with S&P500 up more than 24%, DJI30 exceeded previous all time highs and finished up 14% and the tech heavy Nasdaq soared 43%. European stocks also fared good, DAX gaining more than 20%, CAC40 more than 16% and the Romanian BET index gained over 32% in 2023.
_
Notes to editors
Bogdan Maioreanu, eToro analyst and markets commentator, has over 20 years of experience in financial services and investments and a strong background in journalism. He held different Corporate Banking management positions in both Raiffeisen Bank and OTP Bank, before moving to business consultancy roles working for IBM Romania among others. Bogdan is an Executive MBA from Asebuss and Washington University.
The information provided by KomuniK
Deloitte Romania assisted AQUILA, leader in the integrated distribution and logistics services for the fast-moving consumer goods market in Romania and the Republic of Moldova, in the acquisition of Romtec Europa, the company that produces car care fluids and aerosols. The transaction, valued at 3.2 million euros, was signed in December 2023 and completed recently, following approval from […]
CBRE Romania, the leader in providing commercial real estate services, launches an analysis regarding the business potential and alternative investment and development opportunities in Timiș County. According to the analysis, Timiș stands out as a vital centre of Romanian agriculture, ranking first in agricultural area with 693.034 hectares and second in organically cultivated land area. […]
By the end of 2024 the stock of modern retail spaces will overpass 4.5 mln. sq. m setting a new record for Romania. Circa 186,000 sq. m could be added to country’s modern retail stock if taking into consideration under-construction projects. The popularity of the specialized format is noticed in the forecasted developments, claiming 95% […]
The average office fit-out costs have increased by around 15-20% during the past 12 months, but they still remain among the lowest in the Central and Eastern Europe (CEE), according to data from the Cushman & Wakefield Echinox real estate consultancy company. With an average level of €943 per sq. m of office space, the […]
Romania is present at the 10th edition of the EU-Startups Summit in Malta, the biggest event for tech startups in Europe, through RoTechMission, a delegation organized by DiFine PR, Techcelerator and ROTSA (Romanian Tech Startups Association). More than 2,000 people, including 1,000 entrepreneurs and 300 investors, will attend the event, which takes place from May […]
AeroVacanțe, part of the Aerotravel group, is betting in 2024 on new destinations, more accessible for Romanians, as a result of the growing demand for holidays in new destinations untouched by mass tourism. Thus, the agency introduces for this summer 14 charter flights to Lesbos, the third largest island in Greece, where the costs of […]
