2024 Outlook: AI, Private Lending Growth Seen Despite Lingering Risks
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AI boom - Many expect AI adoption and IT spending growth to accelerate in 2024, benefiting tech companies like Microsoft and cybersecurity firms. But some say AI earnings impact is overhyped for 2024.
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Private credit rise - With banks lending less, private credit to fill funding gaps is seen as a big 2024 trend. But market lacks transparency and risks are high as more capital chases deals.
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Small caps due to rebound? - If rates fall as expected, small caps could rally 50% with cheap valuations and less rate sensitivity. But many smaller firms are still struggling.
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2024 themes very different than expected - Wall Street braced for recession in 2023 due to inflation and rates, but resilience created new AI, private credit and small cap opportunities.
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Risks abound despite new trends - With wars, elections, rates still weighing on consumers, and recession calls potentially just early, new favorite trends have downside.