Key Points
- Global GDP grew at its long-term average and the general deceleration in inflation allowed several major central banks to begin monetary easing.
- Most risk assets enjoyed strong returns in the calendar year ended December 31, 2024. US equities led on better-than-expected economic data and AI-related growth.
- Bond performance lagged that of the prior year and equities. Corporate high-yield bonds were once again the best performer on an improving economic outlook and attractive coupons.
- Gold touched all-time nominal highs on heightened geopolitical tensions. Higher-than-expected power demand fueled by AI-related growth drove natural gas and MLP prices higher.