As the global economy swings back toward a “Goldilocks” environment, we are optimistic that 2024 could be a good year for equity markets overall. A market regime shift is clearly underway, with lower but steady economic growth and moderating inflation on tap for the coming year. We expect US equity market concentration to loosen, and greater cyclical volatility and dispersion to provide more opportunities for active managers to deliver alpha. Regional and market-cap valuation dislocations also present a potential roadmap for capturing upside. Japan, Europe, and EMs look attractive, as do macro- and rate-sensitive segments and sectors. Related content dives into areas where we see opportunity including health care, Japan, equity income, and China. And our stewardship expert explores ideas that could help equity investors build resilience.