On Money Life with Chuck Jaffe, Jaffe connects with top financial experts to discuss investment and financial planning topics. He invited Arnerich Massena Co-CEO and Chief Investment Officer Bryan Shipley, CFA, CAIA, to explore what’s on the horizon for 2024 and discuss the firm’s recent piece, “Investment Trends to Watch for in 2024: Choose Your Own Reality,” available here.

The discussion covered such diverse topics as artificial intelligence, the rise of influencer culture, U.S. government debt, copy traders, the role of fixed income in a portfolio, and everything in between. Bryan explained the approach Arnerich Massena’s research team takes to exploring macro trends and applying the larger cultural influences we see to our outlook, noting that if you just use past performance as a guide, you’re likely to miss significant opportunities. He talked about the challenges of navigating an environment in which investors are subject to information bias, echo chambers, and even false or misleading information, and how investors can counter that.

Jaffe and Shipley focused a significant portion of the conversation on U.S. versus international markets, and how important an international allocation is to a portfolio. Bryan pointed out that U.S. markets have been in “the longest-tenured bull market for U.S. equities than we’ve seen in the past 40 to 50 years,” whereas generally, U.S. and international cycle about every six to seven years. Shipley explains why he continues to advocate for international exposure, discussing valuations, yields, and growth potential, as well as possible challenges. He points out that the last two years have been a bit of a tug-of-war between U.S. and international, with no clear leadership between U.S. and international. “That’s typically what we see in these turning points when these market cycles revert, is a bit of a struggle for a year or two… and then either U.S. or international tends to take the leadership position, and we think we are probably on the precipice of that turn.”

Listen to the January 22, 2024 Money Life with Chuck Jaffe show at https://moneylifeshow.libsyn.com/investors-are-in-a-tug-of-war-between-us-and-international-markets. Bryan’s segment begins at the 14:55 mark. You can download Arnerich Massena’s “Investment Trends to Watch for in 2024: Choose Your Own Reality” below.