TIAA Wealth Management 2024 Outlook: Navigating the Last Mile

[Narrator] Hello. I’m Neel Mukherjee, TIAA Wealth Management Chief Investment Officer and today I’m excited to share with you our TIAA Wealth Management 2024 Outlook.  This Outlook, “Navigating the Last Mile”, shares our view of the road the markets and economy must travel in the upcoming year to get to the Federal Reserve’s inflation target of 2%. 
[Narrator] Looking ahead, we anticipate major changes in the global market, including a slowdown in the U.S. economy and ongoing challenges for Europe. 
[Narrator] Domestically, as wage growth cools and unemployment rates edge up, consumer spending may slow due to higher borrowing costs and tighter credit conditions. Additionally, fiscal policy is expected to have a negative impact on growth. The Fed, however, is likely to remain cautious in the first half of 2024 to prevent inflation stemming from above-trend GDP growth. This cautious approach means that policy rates are expected to remain in restrictive territory for a longer period, potentially posing challenges for corporate earnings. 
[Narrator] On a positive note, we discuss the potential for better-than-expected productivity growth to support profitability and lead to a recovery in earnings.  
[Narrator] In addition, we highlight key factors driving the U.S. growth story over the decade, such as the aging Millennial generation ramping up their consumption, accelerating innovation, and investments in higher end manufacturing, domestic supply chains and the new energy economy. Overall, 2024 will be interesting for investors, and we hope that our 2024 Outlook will help make sense of what lies ahead and the steps our clients should take to secure their financial future.