Liz Young, Head of Investment Strategy at SoFi, believes that the positive correlation between equities and bonds may continue, and explains why she is cautious on cyclical stocks going into 2024. She notes that recent data show a cooling, with signs of a retreat in consumer spending and difficulties in the manufacturing sector. She stresses the importance of preventing an economic contraction that could break the correlation between equities and bonds, leading to a decline in both. She suggests looking to the consumer staples, utilities and healthcare sectors for those seeking growth without rate sensitivity.
 
(MT Newswires)

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