2024 Year in Review
Market Commentary
2024 Year in Review
(3 min read)
13th December 2024
The headlines during 2024 have been dramatic at times and full of surprises. Markets have had to deal with a range of geopolitical events including continued wars in Ukraine and the Middle East, elections in the US and the UK, and a budget here at home that impacted most areas of the private sector. As we have touched on in some of our newsletters during the year, the negative headlines we have all had to digest have not necessarily translated into poor negative investment returns. In fact, economic growth around the world has been positive in varying degrees with the US leading the way and, despite every effort of politicians to the contrary, even the UK has shown signs of returning to a more stable growth outlook. The main outlier has been Europe and, in particular, Germany where the economy has looked less benign.
Although markets continue to be volatile, returns have been solid, driven and led by the US market and the technology sector. However, in the second half of the year we did see some rotation away from that area of the market in favour of ‘value’ stocks, which trade on a lower valuation relative to growth stocks and tend to be more established companies. Equities were supported by a stable oil price, which currently sits at the year’s low, and calm returning to the bond markets after a selloff in the first quarter. During the year client portfolios continued to follow a diversified strategy across equities in terms of market capitalisation, sector and style, both globally and in the UK. We remained mildly cautious on fixed income preferring short maturities in government bonds.
The outlook, as always, remains uncertain and diversification remains the best option in smoothing out the bumps in the road. However, the fundamental outlook remains positive with economies in stable condition and less uncertainty for markets to deal with in terms of political change. In addition, the fourth revolution of AI and technology developments continues to be an exciting factor for productivity growth and potential investment returns. We remain nimble and able to adjust to any future changes to market drivers.
Peter Geikie-Cobb | Head of Investment Research
Montgomery Associates
Read more Articles
