Burns McKinney, NFJ Investment Group senior portfolio manager, joins ‘Squawk Box’ to discuss the latest market trends, why he believes the risk-reward in equities today isn’t as good as it was a year ago, 2024 outlook, and more….(read more)

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Investors should prepare for a challenging year ahead as NFJ Investment’s Burns McKinney advises that they should expect lower returns and higher volatility in 2024. The global investment landscape is rapidly evolving, and it’s important for investors to be aware of the potential risks and adjust their investment strategies accordingly.

McKinney points to a number of factors that are likely to impact the market in the coming year. These include continued uncertainty around the ongoing COVID-19 pandemic, geopolitical tensions, and potential shifts in monetary policy. All of these factors are contributing to a less predictable and more volatile investment environment.

One of the primary reasons for anticipating lower returns in 2024 is the likelihood of a slowdown in global economic growth. McKinney highlights the potential impact of rising inflation and interest rates, as well as the potential for supply chain disruptions and increased input costs. All of these factors can put pressure on corporate profits and, in turn, stock market returns.

In addition to lower returns, McKinney also warns investors to brace for higher levels of volatility in the year ahead. This means that the prices of stocks, bonds, and other assets are likely to fluctuate more dramatically, making it more difficult to predict and navigate market movements.

So, what can investors do to prepare for this challenging environment? McKinney suggests that diversification will be key. By spreading their investments across a range of asset classes and geographic regions, investors can mitigate the impact of market turbulence and potentially improve their risk-adjusted returns.

Furthermore, McKinney advocates for a long-term approach to investing. By focusing on their investment goals and maintaining a disciplined investment strategy, investors can avoid making knee-jerk reactions to short-term market fluctuations.

Finally, McKinney emphasizes the importance of staying informed and seeking out professional advice. As the market continues to evolve, it’s crucial for investors to stay up-to-date with the latest economic and market developments and to seek the guidance of experienced financial professionals.

In conclusion, investors should heed the warnings of NFJ Investment’s Burns McKinney and prepare for a challenging year in 2024. By anticipating lower returns and higher volatility, and taking proactive steps to diversify and stay informed, investors can position themselves to navigate the uncertainties ahead.