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As we step into an environment where there's an anticipation of easing monetary policy and declining inflationary pressures, global economic growth is forecasted to be muted. The near-term challenge might be to calibrate the monetary policy in response to the descending inflation. Many have been skeptical, and for good reason: Inflation has felt like a problem that wouldn’t go away. But with price pressures now abating, and policymakers shifting their focus to the risk of overtightening, times are changing. Markets are taking notice: a global 60/40 stock/bond allocation is having its best week of the year so far. This year is off to the races again with strong equity market returns across Japan, Europe, and the United States. Within the U.S. market, the Magnificent Seven stocks continue to outperform benchmark exposures but returns across these mega-caps are increasingly divergent. China continues to hold the emerging markets back as its measured policy response and property market challenges have left many global investors sitting on the sidelines. 2024 is lining up to be the first year after the pandemic when we are finally past all the disruptions and dislocations. India’s story continues to show a narrative of resilience and adaptability. Marked by robust economic growth, moderating inflation, and high foreign flows into the market accompanied by a stable Indian rupee.

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