Will 2024 be any different to 2023, and what will the financial challenges be?
2024 got off to a jittery start as global markets underperformed compared to the end of 2023’s market surge.
There is also rising unemployment and a possible recession in countries such as the UK, Western Europe and the US. There is a war in the Middle East that could potentially escalate if other Middle Eastern countries join in. Also, there are 40 elections coming up in 2024, especially in the US and the UK, that could have a significant impact on global economics. These governments will push to ensure their economies are doing well.
In 2023, companies such as Nvidia skyrocketed with AI development. Will the AI boom continue into 2024?
Bitcoin increased by 135% despite the collapse of FTX and the Binance debacle.
Chaos reigned in 2023, but Chaos always leads to opportunities. Look at the opportunities AI and cryptocurrency created last year.
What could be the Biggest Financial Challengers in 2024?
2024 is already steeped in chaos with the Middle East conflict, the Ukrainian War with Russia, not to mention a recession.
Nigel Green, CEO of deVere, gives his predictions for the Top 4 global market risks for 2024 that may impact your finances.
“The interplay of geopolitical tensions, inflationary pressures, electoral outcomes, and China’s economic woes underscores the need for a proactive and diversified approach to investment management to protect and grow personal wealth. Investors are facing a myriad of uncertainties that pose substantial risks to the stability and performance of global markets – but as ever, where there are risks, there are also significant opportunities.”
Middle East crisis escalation – One of the most pressing risks facing global markets is the potential escalation of the Middle East crisis. The October 7 attack by Hamas on Israel has heightened concerns about the possibility of the conflict spreading to involve other nations and groups in the region. Any escalation could disrupt global oil supplies, leading to increased market volatility. Industries tied to energy, transportation, and commodities could experience significant fluctuations.
Resurgent inflation – While inflation witnessed a decline from its 2022 peaks in most major economies, including the US, UK and eurozone, the spectre of resurgent inflation remains a critical risk in 2024. Energy prices, a significant driver of inflation, are known for their volatility, and any sudden surge could lead to an increase in the headline inflation rate.
Elections across the globe – 2024 is marked by decisive elections in over 40 countries, representing more than 50% of the world’s GDP. Elections introduce an element of political uncertainty, and outcomes can shape economic policies, trade relations, and market sentiments.
China’s growth crisis – Contrary to earlier forecasts, China’s post-COVID-19 reopening has not led to the anticipated growth in 2023. The real estate crisis, representing a significant portion of China’s GDP, has been a key impediment to economic recovery.The prospect of China’s economic stagnation looms large, carrying implications for trade partners and global markets.
Geopolitical tensions, inflationary pressures, electoral outcomes, and China’s economic challenges warn against complacency from last year’s market rally. There is a need for a proactive, adaptable, and diversified approach to investment management to protect and grow personal wealth. Global chaos historically leads to opportunities to buy good stock at lower prices, which will benefit investors over the long term.