In 2024, we’ve endured wars, political crises, and trade battles, yet global equity markets have continued to push forward.
In our latest Six Minute Strategy video, Guy Monson, Chief Market Strategist, discusses this global market resilience, most recently seen following Donald Trump’s decisive victory in the US presidential race.
Most commentators had expected market turmoil in the face of an unconstrained Trump White House. Instead, equity markets rallied, while equity and bond volatility actually fell.
Investors, it seems view the president-elect less as a source of instability and more as a potential catalyst for growth. This sentiment has translated into action: US equities have seen the largest monthly inflow on record.
We maintained our overweight equity positions throughout the election period, and that decision has proven rewarding. However, as we look toward 2025, Guy suggests that we must balance optimism with caution. He outlines some areas for concern – including US equity valuations, and the political and economic challenges in Europe. All this informs how we are positioning ourselves for the year ahead.