Get ready for a bumpy ride, investors. According to a recent survey by JPMorgan, inflation and the US presidential election are poised to be the main drivers of global markets in 2024, creating a volatile landscape for asset prices and investor strategies.

Inflation Takes Center Stage

Topping the list of concerns, 27% of surveyed traders believe inflation will have the biggest impact on markets this year. While hopes for slowing inflation fueled a year-end rally in stocks and bonds, data like Friday’s robust US jobs report has dashed those hopes, sparking the biggest sell-off in US Treasuries since September 2023. This heightened sensitivity to inflation will likely lead to market swings based on upcoming economic data releases, particularly monthly jobs and inflation figures from the US.

US Election Season Heats Up

Adding another layer of uncertainty is the looming US presidential election in November. With former president Donald Trump securing victory in the New Hampshire Republican primary, the stage is set for a potential rematch with incumbent President Joe Biden. This highly anticipated contest is expected to exacerbate market volatility, keeping investors on edge.

Beyond the Big Two

While inflation and the election will take the spotlight, other concerns lurk behind the scenes. Recession fears, once the top worry in 2023, have receded to third place at 18% as economic growth outperforms expectations. However, geopolitical tensions remain high, with the ongoing wars in Ukraine and the Middle East presenting potential flashpoints for market disruptions.

Liquidity Concerns Rise

Navigating this volatile environment will be further complicated by growing concerns about liquidity. While worries about volatile markets remain the top trading challenge for 28% of respondents, the share citing it as their main concern has dropped significantly compared to last year. In its place, liquidity availability is rising up the list of concerns, reaching 24%, with consistent access across diverse providers becoming a key priority for investors.

Adapting to Change

This complex and evolving market landscape demands adaptability from investors. Staying informed about key economic data releases, closely monitoring the political landscape, and diversifying portfolios across asset classes and liquidity providers will be crucial for navigating the volatility that lies ahead. As JPMorgan’s Chi Nzelu emphasizes, “investors need to know that liquidity will be reliable even in shock times,” and selecting the best execution channels will be critical for success.

So buckle up, investors. 2024 promises to be a year of high drama and potential rewards in the global financial markets. By staying informed, adapting your strategies, and prioritizing liquidity access, you can navigate the choppy waters and seize the opportunities that arise.