The Federal Reserve is expected to cut US interest rates 2-3 times this year starting from its June meeting, making global bonds a promising investment, says London-based Newton Investment Management.
Chief executive Euan Munro said 2024 is likely to be the third consecutive year with stubborn inflation, as a deteriorating economic backdrop and heightened volatility are likely to continue.
“Against this backdrop, we see compelling risk-reward dynamics across the equity income space. In the US, we expect rate cuts starting from the Fed’s June meeting. However, the bias of the risk is for the pace of cuts to be slower and to take longer,” said Mr Munro.
Looking ahead, Newton projects further moderation in US…
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