The Risk of Inflation Outpacing Investment Returns in 2024

As we look ahead to the investment landscape of 2024, one of the key factors that investors need to consider is the risk of inflation outpacing investment returns. Will the 2024 investment picture look like 2023? If not, you'll need to be positioned in the best long-term investments for 2024. Growth in the US economy continues to come in above expectations, despite elevated interest rates, weakness in other major economies, and geopolitical tensions.

The best thing about investment strategies is that they're flexible. Here are five you should learn before beginning to trade. Investors must be prepared for the possibility that prices in general will rise at a faster pace than the return on their investments. This scenario could erode the real value of investment portfolios over time, leading to diminished purchasing power.

The deficit totals $1.6 trillion in fiscal year 2024, grows to $1.8 trillion in 2025, and then returns to $1.6 trillion by 2027. This high level of government borrowing could put upward pressure on interest rates, further impacting investment returns. Growth ETFs give investors easy exposure to the wide world of growth investing, but they may not provide adequate protection against inflationary pressures.

By: Global Investment Strategy Team. Our Top Market Takeaways for December 8, 2023. As we wrap up the final few weeks of 2023, we turn to the experts for insights on how to navigate the potential challenges of rising inflation and its impact on investment returns. Major Japanese stock indices are at their highest levels in decades and foreign investments are rising, supported by domestic macroeconomic policies aimed at stimulating growth.

Retirees could be in line for a golden period of income rises thanks to the rising value of state, workplace, and private pensions, but they must also be mindful of the impact of inflation on their retirement savings. UK economic growth will continue to be “anaemic” ahead of the general election, according to leading economists who called on the government to address structural issues that could impede long-term growth prospects.