Andrew Sheets from Morgan Stanley anticipates a major increase in global mergers and acquisitions (M&A) starting in 2024. This expected surge is fueled by several key factors: current M&A activity is unusually low, the economy—particularly in the U.S.—is performing well, there’s a wealth of cash available from private equity and corporations, and upcoming policy changes may include rate cuts and a more favorable stance towards M&A from the U.S. administration. Although there are risks, such as potential economic downturns or shifts in policy, Sheets believes the positive elements will outweigh these concerns, leading to an optimistic outlook for financial equities.
