The Weekly Brief
16-12-2024
Thought of the week
2024 has been another strong year for risk assets. Both equity and credit markets have posted solid gains, and a global 60/40 portfolio is up over 14% year-to-date. US economic momentum has proved resilient, helping the S&P 500 to outperform other major regional equity markets once again. Tech concentration remains a key theme, and the magnificent seven group of stocks have accounted for 60% of S&P 500 returns. However, economic resilience has led markets to rethink the path of monetary policy. Outside of the eurozone investors have pared back their expectations for rate cuts, and global government bonds have delivered negative returns year-to-date. The concentration of returns over 2024 will have affected portfolio weights and investors should consider whether rebalancing is required as we head into 2025.
Risk assets have delivered impressive gains in 2024
Selected asset class returns, % total return year to date
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