According to Jinshi, executives of Goldman Sachs Asset Management said on Tuesday that they expect the U.S. economy to slow to around 2% in the second half of 2024, and stock indexes will remain basically flat due to declining corporate earnings growth and political anxiety. Lindsay Rosner, the bank's head of multi-sector investments, said: "This is definitely a soft landing."
Rosner added that it is "very likely" that investors will see a rate cut in the U.S. in the second half of 2024. She doesn't expect the Fed to start cutting rates until September, but will likely do so at a rate of 25 basis points per quarter. As rates fall, Rosner expects fixed income markets to benefit. She sees particularly interesting opportunities in the high-yield bond market and structured credit.