Wealth Outlook 2024 - Slow then grow

59 Wealth Outlook 2024 | Opportunistic Our top 10 high conviction potential opportunities FIGURE 4 Cyber shares have rarely been cheaper despite EPS growth Forward P/E Cybersecurity forward P/E 10 40 30 20 2016 2017 2018 2019 2020 2021 2022 2023 Source: Haver Analytics as of November 3, 2023. Using Nasdaq Cybersecurity Index. All forecasts are expressions of opinion and are subject to change without notice and are not intended to be a guarantee of future events. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. Real results may vary. Nasdaq CTA Cybersecurity delivered 14% earnings growth as October 31, 2023 (versus -0.4% for the S&P 500 as a whole). That’s on top of a 36% increase in earnings per share (EPS) in 2022.⁴ ⁴ Factset as of December 31, 2022. Cybersecurity shares have failed to keep pace with this consistent, market-beating earnings growth. Valuations are hovering near early pandemic lows ( FIGURE 4 ). As we look to 2024, we see cybersecurity shares rerating to be a source for reliable profits growth in an otherwise uncertain world.