2024: Deutsche Bank experts predict a reduction in key interest rates – stocks and bonds have a double chance for investors

2024: Deutsche Bank experts predict a reduction in key interest rates – stocks and bonds have a double chance for investors

According to a report by www.businessinsider.de, Deutsche Bank expects central banks in the US and Europe to significantly cut key interest rates from mid-2024. This could lead to a “double opportunity” for investors in both stocks and bonds, according to Deutsche Bank’s chief investment strategist, Ulrich Stephan.

In detail, Deutsche Bank predicts that the Federal Reserve in the USA will cut key interest rates by 1.75 percentage points by the end of 2024, while the European Central Bank (ECB) will cut its key interest rates by one percentage point by 2024. The interest rate cuts are likely to respond to the weak economy.

The expected interest rate cuts could lead to good returns for investors in both stocks and bonds. Deutsche Bank forecasts high single-digit returns and sees an upside potential of almost ten percent for stocks. The bank is particularly optimistic about stocks from the tech and finance sectors. Deutsche Bank also sees opportunities in European, Japanese and US stocks.

The lower key interest rates could have a particularly positive impact on sectors such as banking, insurance, energy and industry. Although Deutsche Bank rates the outlook for automakers as mixed, it expects the stock market to perform overall positively in 2024.

The overall economy is expected to face low growth, falling inflation and low interest rates, making stocks an attractive asset class.

Based on these forecasts, the market situation could be positive for investors in 2024, especially with regard to the stocks and sectors mentioned. Investors should therefore closely monitor developments in the interest rate market and economic developments in order to adapt their investment strategies accordingly.