2024 provided positive returns across the globe in both the stock and bond markets. The cake goes to the US market with a whopping 24% return! This was the first time since the late 90s that the US market had over a 20% return two years in a row. That doesn’t mean we didn’t experience volatility, there were several notable dips during the year but they were quickly reversed.
In the bond market, US bonds were up slightly for the year while global bonds were up 5%. During the last few months of 2024, the Federal Reserve approved 3 rate cuts, however at the same time we saw 10-year Treasury yields increase. This reminds us that sometimes, bond yields do not fall in lockstep with what the Fed is doing (in fact one-third of the time Treasury yields move in the opposite direction). This is because there are so many variables that go into the price of bonds (and stocks for that matter!) The market is constantly incorporating new information into prices.
Overall 2024 was a great year for investors and showed the value of staying the course to reap the returns whenever they occur. We are pleased to present you with the year-end market review.
