Markets in Focus: Concentrating on Diversification in 2024

We entered 2024 with the prospect of moderate economic growth, higher rates for longer, and inflation continuing to ease. The traditional negative correlation between equities and bonds, which was a cornerstone of the traditional 60/40 portfolio strategy, underwent a notable shift in the last few years. Higher correlation between equities and bonds and increased index concentration lead investors to revisit top-down allocations across regional, country, style, and thematic exposures.

In this virtual event, BlackRock and MSCI experts discussed key investment themes for 2024 considering changes in diversification and high index concentration. To navigate the new regime, how investors built more resilient portfolios by, not only revisiting their top-down asset allocation, but also broadening their equity exposure across regions, countries, styles and thematic exposures like transformational technologies and artificial intelligence?

Agenda topics:

• 2024 investment themes in a new regime
• Asset allocations in changing market dynamics 
• Beyond index weights, how concentrated are earnings and risk?