Central banks are normalising their monetary policy, thus increasing visibility for investors. It makes sense to enter the market now; long-term investors in particular are in an advantageous position.
Transaction activity will thus increase again in the second half of 2024. In the medium term, the focus will be on cash flow generation, which is the key to outperformance.
Strategy Implications
The consensus view is that monetary policy has peaked, as inflation rates across Europe retreat closer towards central bank targets. This will provide well-needed stability across financial markets and thus clarity on asset pricing – an opportunity investors should be ready to take.
