Fixed Income Outlook and Economic Analysis

After a tumultuous year for the markets, what's in store for 2024? In this year-end episode, Schwab experts look ahead to consider what investors might expect from the markets in the new year.

First, Liz Ann Sonders, Schwab's chief investment strategist, speaks with senior investment strategist Kevin Gordon. Liz Ann offers her perspective on the direction of the U.S. economy and stock market. She and Kevin discuss inflation, interest rates, company earnings, and the job market, among other topics.

Next, Kathy Jones, Schwab's chief fixed income strategist interviews her colleagues Collin Martin and Cooper Howard. Kathy looks at what bond investors might expect from the Federal Reserve and fixed income assets in the new year. She and fixed income strategist Collin Martin recap the year in the corporate bond market and look ahead for what's next in bond investments in 2024. Kathy also discusses the muni bond market with fixed income strategist Cooper Howard. 

Then, Jeffrey Kleintop—Schwab's chief global investment strategist—joins Liz Ann on the show and examines what 2024 might hold for the global economy and markets.

Finally, Mike Townsend, Schwab's managing director of legislative and regulatory affairs, offers his outlook on what to expect from a possible government shutdown, a busy regulatory environment, and the 2024 election.

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Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. 

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. 

Investing involves risk, including loss of principal.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.

Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.

Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.

Small cap investments are subject to greater volatility than those in other asset categories. 

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

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Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

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Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions.

The Global Manufacturing Purchasing Managers Index (PMI) is a survey-based indicator of the economic health of the global manufacturing sector. The PMI index includes the major indicators of: new orders, inventory levels, production, supplier deliveries and the employment environment.

The Employment component of the Eurozone Manufacturing Purchasing Managers Index (PMI) measures the conditions surrounding the cost of employment business expenses experienced by surveyed business leaders in the Eurozone. 

The Input Prices component of the Eurozone Composite Purchasing Managers Index (PMI) measures the conditions surrounding the prices of raw materials and other business expenses experienced by surveyed business leaders in the Eurozone.   

The MSCI EAFE Equal Weighted Index includes the same constituents as the MSCI EAFE Index (large and mid-cap securities from Developed Markets countries around the world excluding the US and Canada), with an alternative weighting scheme where at each quarterly rebalance date, all index constituents are weighted equally.

The S&P 500 Equal Weighted Index includes the same constituents as its parent index, the S&P 500, with each index constituent represented equally. 

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