Investors will remember 2024 as the year of the market correction that never arrived. Despite geopolitical turmoil in Europe and the Middle East, escalating trade tensions with China, mostly every major equity market delivered positive returns. Even the Republican ‘clean sweep’ in Washington, which most saw as a potential source of uncertainty, was interpreted by markets as an opportunity for deregulation and innovation.
But what of the year ahead? Join Guy Monson, Chief Market Strategist, as he outlines a mood of cautious optimism but with some concerns. First, sticky core inflation means central banks are stalling their rate cutting programmes. Second, he sees continued pressure on sterling and UK gilt yields as investors fret about fiscal sustainability. Third, there are fears that China is slipping into outright deflation with worrying implications for global trade.