Wealth Outlook 2024 - Slow then grow

9 Wealth Outlook 2024 | Our outlook Taking advantage of the markets’ big reset Reading Wealth Outlook 2024: Slow then grow Steven Wieting’s Slow then grow on page 10 summarizes our Wealth Outlook views and the macroeconomic arguments for our 2024 investing strategy. In particular, it explains why Citi Global Wealth went overweight equities from an underweight/neutral position on October 18 for the first time since 2020. In Geopolitics and elections: assessing risk in 2024 on page 24 we assess the main risks to the global economy in 2024. History shows that 90% of geopolitical events have not changed the trajectory of the world economy. But we also need to be prepared for events that can change the direction of markets and portfolios. Vulnerable energy supplies and cyberwarfare are two such risks. In both cases, portfolio construction can be adjusted to address a portion of the increased geopolitical risk we now face. A new Wealth Outlook 2024 feature: “Our top 10 high-conviction potential opportunities” We believe in “core” and “opportunistic” portfolio investments. Our core is a diversified portfolio based on a client’s risk profile and goals. Core allocations are made to benchmarked asset classes based on our Strategic Return Estimates, with tilts toward elements that can either diversify risk or offer the potential opportunity for incremental alpha over 12- to 18-month time horizons. For many investors, core is 85% of their assets. InWealth Outlook 2024, we have identified 10 special situations that may comprise up to 15% of one’s portfolio depending upon an investor’s risk profile and investment objectives. These are timely and less recognized opportunities. For some, we may see a catalyst for growth or change in market conditions. Others are undervalued assets. There are country- specific ideas in Japan. Private credit shines in this environment. And we see investable ideas based on the impacts of artificial intelligence. Seeking to improve your portfolio It is my hope that you will read, enjoy, and ponder the information in Wealth Outlook 2024: Slow then grow, Investing in the markets’ big reset . The investments team at Citi Global Wealth believes in turning our guidance into action. We recognize that our best thinking should be implementable and the value-add we provide should be measurable. We also acknowledge that the media amplifies news that stokes fear and tends to ignore the fact that economic and social development are themselves unstoppable trends. At this moment, our deep analysis suggests that the global economy is healing and is poised for further recovery, full of potential opportunities to build profitable and resilient portfolios. That’s why we believe that this is a good time to be a global investor, maybe even a very good time. Thank you for your confidence in Citi Global Wealth. It is our honor to present this Wealth Outlook 2024 for you and your families. David Bailin, Chief Investment Officer