Key Points
- Most risk assets enjoyed strong returns in fiscal year ended June 2024. Developed markets equities led on better-than-expected economic data and the anticipation that central banks would begin easing monetary policies.
- Large-cap technology stocks drove the US market on positive developments in artificial intelligence technologies. This led to growth strategies outperforming value counterparts but led to concentrated gains.
- Bond performance improved as the market began to anticipate policy rate cuts in CY 2024, driving yields on shorter tenors down. Corporate high-yield bonds were the best performer on an improving economic outlook and attractive coupons.
- Interest rate–sensitive real assets rebounded. Gold rose to all-time nominal highs on heightened geopolitical tensions, while other commodities—including oil and copper—gained on supportive supply/demand dynamics.