2024 was another strong year for asset returns, as economic growth surprised on the upside and central banks finally began to cut rates. That meant the S&P 500 posted a total return of +25%, marking the first time since the late-1990s where it’s achieved back-to-back annual returns above 20%. The index was powered by further gains for the Magnificent 7, which were up +67%, and other risk assets did very well too. Indeed, credit spreads tightened further whilst Bitcoin more than doubled. Moreover, the US exceptionalism narrative helped push the US Dollar to its strongest annual close since 2001.

Yet despite the generally upbeat performance, there were plenty of bumps along the way. Rate cuts took longer than many expected, meaning that sovereign bonds struggled to gain traction. In fact, the 10yr Treasury yield rose for a 4th consecutive year, which is the first time that’s happened since the 1980s. Political developments also caused several wobbles, particularly around April as tensions in the Middle East escalated. Over in France, the country’s assets underperformed amidst the political uncertainty. And there was huge (albeit brief) market turmoil in the summer, as weak US data and a BoJ rate hike led to the unwinding of the yen carry trade. So with quite a few concerns still in the background, gold prices posted their strongest annual gain since 2010.

Which assets saw the biggest gains of 2024?

• Equities : Global equity markets advanced across almost every region in 2024. The S&P 500 was up +25.0%, the STOXX 600 rose +9.6%, and Japan’s Nikkei advanced +21.3%. Emerging markets were relatively weaker, but the MSCI EM index still posted a +8.0% gain.
• Precious Metals : As central banks cut rates and geopolitical concerns persisted, it was a strong year for precious metals. Gold posted its strongest annual return since 2010, with a +27.2% advance. In addition, silver saw its strongest gain since 2020, with a +21.5% advance.
• US Dollar : The Dollar index rose +7.1% in 2024, and the US Dollar strengthened against every other G10 currency.
• Bitcoin : It was another strong year for Bitcoin, which rose by +120% to $93,714. In December, it even surpassed $100,000 for the first time.

Which assets saw the biggest losses of 2024?

• French Assets : With the snap legislative election and the subsequent political uncertainty, French assets saw a clear underperformance in 2024. For instance, French OATs were down -1.0% in total return terms, contrary to Euro sovereigns as a whole which saw a +1.8% gain. The CAC 40 did post a modest +0.9% gain in total return terms, but that was clearly behind the +9.6% advance for the STOXX 600.
• Oil : Brent crude oil prices fell -3.1% in 2024, ending the year at $74.64/bbl. That was a second consecutive annual decline, although WTI held steady with a +0.1% gain to $71.72/bbl.
• Japanese Yen : Although the Bank of Japan did start to hike rates, the Japanese Yen still weakened by -10.3% against the US Dollar, marking its 4th consecutive annual decline.