"Economist: Stock Gains Key to Weathering Delayed Rate Cuts"

Economist Ludovic Subran of Allianz predicts that recent stock gains will hold through the year despite potential mid-year market volatility, if central banks delay interest rate cuts as currently priced in by investors. He anticipates a re-pricing of markets to accommodate a different rate cut trajectory, leading to substantial volatility, but expects gains from late 2023 and early 2024 to persist by year-end, projecting 5-10% equity returns. This outlook is based on factors such as growth resilience in the U.S. and inflation stickiness in Europe, amid solid earnings reports and central bankers pushing back on rate cut expectations.