Everyone in the Trustnet editorial team – Gary, Emma, Jonathan, Matteo and Patrick – wishes you a very Merry Christmas. 2024 has thrown everything at investors – from historic surges to political upheavals and plenty of surprises along the way – but now it’s time for a festive break…
The year started off with some caution but when Nvidia added nearly $280bn to its market value in a single day in February, it was an early sign that the artificial intelligence (AI) revolution and tech stocks could underpin another strong year.
Then came March, with Japan raising interest rates for the first time in 17 years. But Switzerland went in the opposite direction, lowering rates in a surprise move and becoming the major Western central bank to cut. This kickstarted the rate-cutting cycle among major central banks, although it was several months before the Federal Reserve made its move.
Closer to home, the UK’s July general election saw a major shakeup, with the Labour Party returning to power after 14 years and bringing some overdue political stability. However, the unwinding of the yen carry trade in August caused a short but sharp sell-off and volatility spike.
September was a positive month, with China pledging stimulus to revive its slowing economy. But the big news was the Fed: it made its first interest rate cut in four years, trimming its key lending rate by 0.5 percentage points.
Just when we thought the drama was easing, November brought the unexpected: Donald Trump returning to the White House, sparking a rally in the ‘Trump trades’ linked to his America First agenda. The year wrapped up with a wobble in December as the Fed’s cautious rate-cut plans for 2025 fell short of market hopes.
Despite all this, it’s turned out to be a rewarding year for many investors—particularly those who stuck with the US exceptionalism and AI themes. The big question now is: can these carry through into 2025, or will we need to brace for another shift in the winds? Only time will tell, but one thing’s for sure: staying nimble and informed will be key.
On behalf of the entire Trustnet team, we want to say a huge thank you for your readership and support this year. It’s been a privilege to share the highs and lows of the markets with you. We’re taking a short break for the holidays but will be back in 2025, refreshed and ready to dive back in.
Wishing you a Merry Christmas, a Happy New Year and, of course, plenty of good fortune in the year ahead.
- The Trustnet editorial team