‘Outlook 2024: tech and mining to shine in H2’
Liberum Capital’s Joachim Klement tells IGTV’s Angeline Ong why tech and mining are likely to do well in the latter half of 2024.
In the first half? Klement says MedTech stocks, related to kidney disease, will offer investors healthy returns.
(AI Video Summary)
"Black swan" events to watch out for in 2024
In a recent video interview with IGTV, Joachim Klement from Liberum Capital talked about potential unexpected events, known as "black swans", that could impact the financial markets in 2024. He mentioned that one possible "black swan" could be the market getting overly optimistic and pricing in cuts to interest rates by the Federal Reserve (Fed) too early in the year. If the US economy remains strong with robust consumer spending and GDP growth, the Fed may delay cutting rates. On the other hand, if there's a sudden collapse in consumption and GDP growth in the first half of the year, the Fed may have more flexibility to cut rates earlier. If that were to happen, stock markets would benefit from the rate cuts.
Considering mining and tech investments
To manage the risk, Klement advises shifting investments towards defensive sectors like healthcare and consumer staples. This is until there's more clarity about the timing of the Fed's actions and the overall state of the US and global economy. Once the rate cuts are confirmed and economic growth picks up, Klement suggests considering investments in two types of sectors: mining and technology. For example, Anglo American, a mining company, recently received an upgrade due to the decline in metal prices. Clement predicts that other mining companies like BHP, Rio Tinto, and Antofagasta could also perform well in the future.
It's also important to consider the potential rebound in China's consumption. The Chinese government is taking a cautious approach to deflate the real estate bubble, which should result in a more sustainable recovery in demand from China, especially in the second half of 2024.
Medical tech companies
When it comes to medical technology companies, Klement mentioned Convatec in the UK, a company focused on wound care, as having attractive value. He also highlighted Fresenius Medical Care, which has been oversold and is projected to have better earnings than currently anticipated.
Regarding the tech sector, Klement believes it will be one of the first to bounce back in 2024, particularly in the second quarter. He suggests looking at tech companies that are tied to businesses' capital expenditure, especially those involved in cloud computing. Microsoft and Amazon were specifically mentioned as favorable investment options for 2024.
Overall, Klement's outlook for 2024 raises the possibility of unexpected events affecting the timing of Fed rate cuts and the performance of consumer spending and GDP growth. To manage the risk, defensive sectors like healthcare and consumer staples are recommended, while opportunities can be found in mining and technology sectors. Additionally, the potential rebound in China's consumption and specific medical technology and tech companies were highlighted as interesting investment possibilities.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
