The global stock market rally continued in 2024 against a backdrop of continued global economic expansion and moderating inflation. Most asset categories exhibited positive calendar year returns, though the rise in Treasury bond yields and strong US dollar created a headwind in the fourth quarter. While the economic backdrop should remain supportive of corporate profits, positive surprises may be more difficult going forward with so much good news already priced in. In terms of portfolio positioning, we remain underweight to US large cap stocks where valuations are stretched and earnings expectations are high. However, we are targeting an overweight position in small cap stocks that appear attractively priced and could benefit from structural shifts in the economy, like deglobalization and reshoring. We also recommend taking advantage of more attractive yields across fixed income sectors.
For further details please see the link here: CFO Market Backdrop and Outlook (January 2025)
If you have any questions or would like to discuss further, please don’t hesitate to reach out.