Morningstar: It is expected that the US economy will achieve a "soft landing" and the Federal Reserve will cut interest rates soon
Morningstar's Chief Investment Officer for Macroeconomic Outlook and Portfolio Strategy, Matt Wacher, stated in an online conference that the current trend of the US Federal Reserve's interest rates is stable, with an expected rate cut in the near future. He mentioned that for the US economy, inflation is projected to reach target levels by 2024, despite maintaining positive year-on-year growth in real Gross Domestic Product (GDP). It is still believed that the current level of interest rates in the US will significantly slow down GDP growth, with inflation expected to decrease to 2% after which it will further drop to 1-2% in the first quarter of 2025. The US economy is expected to achieve a "soft landing". Lorraine Tan, Morningstar's Director of Asian Stock Market Trends, mentioned that the discount to fair value for Asian stocks has slightly narrowed but remains relatively cheap. The outlook for Japanese stocks remains positive, with an overall improvement in Chinese stocks in the second quarter, offering significant upside potential. It is expected that there will be a stronger recovery in Chinese consumption by 2025. Regarding technology, Kazunori Ito, Director of Asian and Japanese Technology Stocks at Morningstar, stated that the recovery is still ongoing, and the application of Artificial Intelligence (AI) can provide more upside potential
Morningstar's Chief Investment Officer for macroeconomic outlook and portfolio strategy, Matt Wacher, stated in an online conference that the current trend of the US Federal Reserve's interest rates is stable, with an expected rate cut in the near future. He mentioned that for the US economy, inflation is projected to reach the target level by 2024, despite maintaining positive year-on-year growth in real Gross Domestic Product (GDP). It is still believed that the current level of interest rates in the US will significantly slow down GDP growth, with inflation expected to decrease to 2% after which it will further drop to 1-2% in the first quarter of 2025. The US economy is expected to achieve a "soft landing".
Lorraine Tan, Director of Asian Stock Research at Morningstar, mentioned that the discount to fair value for Asian stocks has slightly narrowed but remains relatively cheap. The outlook for Japanese stocks is still positive, with an overall improvement in Chinese stocks in the second quarter, indicating significant upside potential. It is expected that stronger consumption recovery will begin to emerge in China by 2025.
Regarding technology, Kazunori Ito, Director of Asian and Japanese Technology Stocks at Morningstar, stated that the recovery is still ongoing, and the application of Artificial Intelligence (AI) can provide more upside potential