2024 was characterised by stronger economic growth than expected, inflation falling but remaining above policy targets, the rate cutting cycle starting, but later and more cautiously than expected, geopolitics continuing to disrupt, although not derail, markets, and US exceptionalism to the fore. Equities, dominated by the US and especially its megacap tech stocks, and gold responded well to this broad backdrop, and the US dollar strengthened, while bond yields rose over the year, leading to negative returns from global government bonds. Politically, by far the most important event was the election of Donald Trump, which is likely to have far-reaching implications, not just in the US but globally, and be a key feature of 2025.
