Key Highlights for Third Quarter 2024
- Global equities advanced in Q3. Monetary easing by several major central banks and a weaker economic outlook led to a rotation favoring value over growth strategies. Real estate, utilities, and financials outperformed the most as yields declined, while energy, information technology, and communication services lagged. Small caps topped large caps by the widest margin in two years.
- Emerging markets bested developed peers as Chinese equities rallied more than 20% since the surprise announcement of stimulus measures in the last week of September.
- Fixed income assets posted their third largest gain in more than two decades, driven by moderating inflation and falling interest rates from central bank tightening.
- Real assets mostly advanced, led by REITs, which were boosted by declining interest rates.
- The US dollar fell to its lowest level in over two years as the Federal Reserve began rate cuts.