Kenya’s fiscal policy is poised to receive a positive boost as concerns over external liquidity are addressed, despite ongoing fiscal challenges, according to the latest Market Outlook Report for 2024 from Standard Chartered.
Titled “Sailing with the Wind,” the report predicts that the US and other major economies will experience a significant slowdown in growth and decreasing inflation in 2024. Chief Investment Officer of Africa, Middle East, and Europe at Standard Chartered, Manpreet Gill, emphasizes the importance for investors to align their objectives with long-term horizons and construct portfolios capable of withstanding potential setbacks.
Gill advises investors to maintain a strict investing discipline, avoid forced selling driven by emotional or financial pressures, and pivot to prevent excessive and permanent losses.
The report highlights that the US and other major economies are expected to witness slower growth and sliding inflation in 2024. While equity and bond markets are projected to start positively, supported by hopes of a soft landing and central bank policies favoring growth, vigilance is urged in case macroeconomic conditions shift towards a harder landing.
Standard Chartered recommends investors in Kenya anticipate more stability in lending rates, despite anticipated fluctuations in forex and the tax environment shaping the operating landscape.
Paul Njoki, Head of Wealth Management, East Africa at Standard Chartered, emphasizes the importance for Kenyan investors to identify the most attractive risk/reward asset classes. Njoki announces the launch of SC Wealth Select, a new holistic investment framework enabling clients to strategically build portfolios to safeguard and grow their wealth in response to evolving investment climates.
SC Wealth Select complements Standard Chartered’s growing capabilities in wealth management, encompassing local and international advisory services, property management, entry-level SC Shilingi Funds, and the recently introduced Signature CIO Funds.
The 2024 Outlook Report provides insights on how investors can optimally position their asset allocation amid rapidly shifting economic conditions. Standard Chartered believes that, in 2024, investing decisions will be influenced by balancing the evolution of the macroeconomic scenario. The report advises Foundation allocations, highlighting high convictions in high-quality Developed Market government bonds, global equities led by the US and Japan, and global equities and bonds likely to deliver performance surpassing cash returns.