The markets delivered another strong performance in 2024, with all major asset classes ending the year in positive territory. This eventful year brought significant milestones, including the first interest rate cuts since the onset of COVID-19, the re-election of Donald Trump, and the launch of multiple cryptocurrency ETFs. For a deeper look at these trends, read the full report here!
After a strong end to the second quarter and reaching a new record high in mid-July, market volatility returned with fears of a recession in the US and an interest rate hike in Japan. On August 5th, the volatility index surged by 42 points to 65, marking the largest ever intraday jump. That same day, the S&P 500 lost 4.2%, the Japanese index Nikkei fell 12%, and Bitcoin dropped 17%. However, markets recovered relatively quickly, and all asset classes, with the exception of cryptocurrencies, closed the quarter with positive returns.
With another good quarter behind us, stock markets continue to reward patient investors with new all-time highs. After an initial 5% drop in April, sentiment improved as investors digested new data and inflation worries subsided. The US market gained 3.22% in the second quarter and increased an impressive 23% over the past 12 months.
As we leave 2023 behind, it’s encouraging to reflect on a year of resilience and recovery in the investment landscape. Following a historically bad returns of 2022 across both stock and bond market, last year turned out to be a great year for those investors who were able stick to their long-term plans, accomplishment not taken lightly.
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