Investor Optimism Dims in January on Rate Cut Uncertainty, US Election, Valuations
• Investors' risk appetite and positive outlook for US equities faded in January due to uncertainty around interest rate cuts and volatility • The upcoming US election and Israel-Hamas conflict contributed to concern over the political environment • Valuations were viewed as the second-biggest concern about stocks • Investors grew more optimistic on defensive sectors like healthcare and energy amid risk aversion • Despite near-term US equity outlook being mixed, investors had positive 2024 expectations for equity markets globally, especially Japan