Release Date: January 10, 2024
FNBO Releases '2024 Investment Outlook'
Artificial Intelligence, Economic Resilience, Consumer Spending, Housing Sector and Equity Valuations Among Topics Examined
“In this year’s Outlook, we evaluate the emerging use of artificial intelligence and the financial health of consumers, companies and the federal government. In addition, we analyze major asset classes and outline FNBO’s investment strategy,” said Kurt Spieler, Chief Investment Officer, FNBO. “Through this uncertain macroeconomic environment, geopolitical risk and Federal Reserve monetary policy are additional key factors—whose full impacts remain undetermined—that we’ll be keeping a close eye on.”
Among the Outlook’s outlined perspectives:
- Artificial intelligence is a transformative technology due to its impact across business functions and industries.
- Generative AI will increase productivity and change the way people work, innovate and collaborate.
- We believe productivity gains and higher profit growth are sustainable for companies with AI exposure.
- The strong jobs market supports continued growth in consumer spending.
- Core inflation is decelerating, contributing to an increase in real disposable income.
- Future consumption may be limited by emerging signs of consumer stress and low business optimism.
- High corporate profitability and lower interest rates may boost economic activity.
- A rolling recession where certain sectors contract and other industries, like housing, recover seems likely.
- Federal government deficits and high debt levels may increasingly impede economic activity.
- Investors can generate more income from conservative investments.
- Equity valuations are reasonable with U.S. small- and mid-cap stocks particularly attractive.
“As we enter 2024, there are emerging signs of consumer stress, and areas of weakness in the economy include transportation and trucking,” added Spieler. “Leisure and travel industries remain strong while lower yields may lead to a rolling recovery in interest rate-sensitive sectors, like housing.”
To read the full text of the FNBO 2024 Outlook—which includes in-depth data, analysis and perspectives—visit here.
FNBO (First National Bank of Omaha), a subsidiary of First National of Nebraska, Inc. (FNNI), is one of the largest privately held banks in the US and has been in business for more than 165 years. FNNI and its affiliates have over $30 billion in assets and 5,000 employees. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota, Texas and Wyoming, providing personal and business banking, mortgage, payment solutions, wealth management and more. As the great big, small bank founded in 1857, FNBO has maintained its commitment to customers and helping build strong communities. Learn more at FNBO.com and connect on Facebook, X and Instagram. Member FDIC.
For information contact:
Sally Christensen, 402-871-1933
The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.