Manning & Napier (MN) 2024 Mid-Year Outlook summary

Opening remarks and agenda

• Introduced speakers and outlined the agenda: economic review, inflation, market outlook, and Q&A.

• Emphasized focus on the distinction between economic softness and outright weakness, and the importance of balancing risk and reward.

Guidance on key objectives

• Prioritize risk/reward balance amid market uncertainty and less compelling valuations.

• Manage portfolios by considering multiple macro scenarios rather than betting on a single outcome.

• Seek opportunities in undervalued sectors and maintain flexibility in asset allocation.

Market trends and strategic opportunities

• Economic growth is slowing, with resilient consumer spending but softness in durables and investment.

• Labor market remains tight but shows early signs of softening, especially in temporary and small business employment.

• Inflation has moderated but is expected to remain in the 2.5%-3% range over the next 12-18 months.

• Equity markets are bifurcated, with large-cap stocks driving gains and small caps lagging.

• International equities appear historically cheap relative to the U.S., prompting increased focus on ex-U.S. opportunities.