Parthian: Gradual u-shaped recovery expected across investment assets
Parthian Partners in its 2024 economic outlook forecasts a gradual U-shaped recovery across investment assets next year. However, it notes a slowing economy and possible recession would likely pressure corporate profits and weigh on asset prices next year. Oluwaseun Dosunmu, Head of Investment Research at Parthian Securities joins me now to unpack the outlook report.
Tue, 12 Dec 2023 15:37:38 GMT
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AI Generated Summary
- Parthian Partners predicts a gradual U-shaped recovery in the economy for 2024, with an emphasis on policy-driven growth and modest expansions in key sectors.
- Concerns about a potential recession in 2024 are tempered by expectations of government intervention and industry activities to sustain economic stability.
- Navigating a challenging business environment characterized by higher interest rates and inflation poses significant hurdles for companies, particularly those with FX exposure, requiring resilience and flexibility.
Parthian Partners, a leading investment firm, has released its 2024 economic outlook, predicting a gradual U-shaped recovery across investment assets next year. Despite acknowledging a challenging economic backdrop, Oluwaseun Dosunmu, the Head of Investment Research at Parthian Securities, remains cautiously optimistic about the prospects for growth in 2024. Dosunmu emphasized that the year ahead is likely to be driven by policies aimed at stimulating growth, rather than witnessing an astronomical surge. The firm expects the economy to expand gradually, citing key factors like high interest rates, bank recapitalization, and energy sector developments as potential drivers of growth. While Dosunmu highlighted concerns about the possibility of a recession in 2024 due to various macroeconomic indicators, he expressed confidence that government policies and industry activities could prevent a downturn. One of the major challenges projected for the business environment in 2024 is navigating a higher interest rate environment and inflation, particularly for consumer goods companies with FX exposure on their balance sheets. Despite the tough operating conditions, Dosunmu believes that companies can adapt and weather the storm by focusing on resilience and flexibility. Looking towards the market projections for 2024, Dosunmu suggested that while corporate earnings may face pressure due to sales volume constraints, sectors like banking and industrial goods are poised for growth. The prospect of new listings such as Dangote Foods and potential mergers in the banking and manufacturing sectors could drive market activity. Dosunmu advised investors to remain cautious and focus on resilient sectors, recognizing the potential for a mild market pullback but emphasizing the importance of monitoring unfolding events. As the economy continues to navigate challenges and opportunities, Parthian Partners remains committed to providing strategic guidance to its clients.
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