Quarterly Market Review & Outlook Q4 2024

2024 proved to be another exceptional year for global financial markets, with the S&P 500 achieving 56 record highs and delivering over 20% returns for a second consecutive year, an achievement seen only four times since 1871. The MSCI World Index also rallied, closing just shy of 20% growth, driven by resilient economic fundamentals, moderating inflation, and robust corporate earnings.

A decisive Republican victory in the US elections boosted market sentiment, fuelling rallies across small caps, regional banks, and the dollar. However, optimism softened towards year-end amid concerns over potential tariffs, legislative hurdles, and geopolitical risks. The Federal Reserve’s slower pace of rate cuts reflected underlying economic resilience, though the year was marked by volatility in fixed-income markets, with yields responding to shifting growth expectations.

Despite challenges, equity market breadth improved, led by growth sectors like technology, benefiting from AI-driven innovations. Defensive sectors lagged in line with improving economic confidence. Meanwhile, European and Japanese markets delivered modest gains, while China’s reopening optimism was tempered by structural challenges, including real estate concerns and demographic pressures.

Looking ahead, the investment environment remains promising, underpinned by stable growth, resilient consumer spending, and expanding corporate profitability. While corrections are possible, these are viewed as healthy resets, paving the way for sustained long-term gains.

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For a comprehensive analysis of Q4 2024 and insights into the opportunities and risks in the year ahead, including an in-depth look at valuations, gold as an asset class and sector-specific outlooks, read the full report here:

View the Q4 2024 Market Review & Outlook

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