Global growth expected below trend in 2024

Renzi Thirumalai, Chief Investment Officer at FNB Wealth and Investments, recently shared his insights on the emerging market investment trends for 2024 in an exclusive interview with CNBC Africa. Thirumalai highlighted several key themes that investors should keep a close eye on as they navigate through the complex landscape of global markets. One of the major factors to watch is the U.S., particularly with regard to inflation. The U.S. has made significant progress in bringing down inflation from its peak, and the focus now remains on achieving the target inflation rate of 2 percent without adversely impacting economic growth. Thirumalai emphasized the importance of reaching this 'immaculate disinflation' stage where inflation is in check, growth is stable, and recessionary risks are mitigated. The global market post-COVID has witnessed the rise of near-shoring and insuring, where companies are moving their production closer to home to minimize supply chain disruptions. This shift has not only helped in controlling inflation but has also presented new investment opportunities for savvy investors. Thirumalai also discussed the significant role of artificial intelligence (AI) in enhancing business value. Companies that effectively leverage AI, like the 'Magnificent 7' in the United States, have experienced impressive outperformance, indicating the transformative potential of AI across various industries. Additionally, Thirumalai stressed the importance of Environmental, Social, and Governance (ESG) considerations in investments. He highlighted the 'authenticity' approach adopted by FNB Wealth and Investments, where doing well for investors goes hand in hand with doing good for the environment and society. Thirumalai underscored the need for a balanced application of ESG principles to ensure market acceptance and positive impact. Investors were advised to remain vigilant on ethical business practices, labor standards, climate impact, and corporate governance. The interview concluded with Thirumalai emphasizing the importance of staying informed and attuned to these critical trends for making informed investment decisions in 2024.