After a prolonged period of US outperformance, many investment portfolios have become heavily concentrated in US equities, but recent policy shifts now challenge US economic and financial hegemony. Investors should carefully evaluate these exposures to determine if greater diversification is warranted.
Global equities ended the week flat overall, but regional performance diverged as ongoing tariff uncertainty continued to impact markets differently.
Global equities declined, driven by a large sell-off in US stocks as investors digested the potential negative impact from new US import tariffs.
Global bonds rallied, outpacing equity markets as concerns mounted that a change in global trade dynamics would weigh on economic growth.
This publication presents manager performance for 37 asset classes and substrategies, showing the median, mean, and key percentiles of return. Relevant indexes for each asset class are also included to provide market context.
Most risk assets enjoyed strong returns in the calendar year (CY) ended December 31, 2024. US equities led on better-than-expected economic data and AI-related growth.
Global equities advanced in January as cooling inflation and US tariff delays catalyzed a risk rally in the second half of the month.
Global equities advanced in Q4 as performance diverged among regions.
We expect the US dollar rally will ultimately cool, with early strength giving way to modest weakening. Meanwhile, gold returns are likely to moderate in 2025 after a surge in 2024. Emerging markets’ use of stablecoins should support positive crypto returns, driving blockchain innovations and investment opportunities.
Global equities advanced as performance diverged among regions. US stocks surged to new all-time highs, whereas developed markets (DM) ex US peers lagged, and emerging markets (EM) shares declined.