1 week Ago By Greg Smith
THREE KEY FACTS Global markets performed strongly in 2024 We correctly predicted that Donald Trump would be re-elected But we were wrong when it came to the Magnificent 7 stocks hitting a speed bump With a new year already underway, it is time again to dust off the crystal ball and engage in the well-established tradition of making big-picture predictions on developments and factors that will shape markets and investment portfolios in the year ahead. Reflecting on 2024, global markets performed strongly, led by the US indices, and particularly the US super-cap technology sector. The blue-sky potential of AI was once again a big driver of sentiment.
The S&P500 surged 23% while the Nasdaq soared 29%. The Dow Jones posted a gain of 13% and the MSCI World Index rose 18%. There were periods of volatility, but the bulls were largely in charge throughout the year, as inflationary pressures eased, central banks entered their rate-cutting cycles, and the world economy appeared to be landing softly.
The Kiwi sharemarket found increasing favour as the RBNZ’s own easing cycle got under way, with the NZX50 rising 11% for its best annual performance since 2020..
