The year 2024 was a remarkable period for equity investors, with exciting technological advancements, welcomed interest rate cuts, and resilient consumer spending. As we look back, several key trends and events stand out that shaped the global investment environment.
Global markets performed well in the third quarter of 2024, continuing their positive trend this year. This was influenced by factors such as strong corporate profits, lower inflation, and interest rate cuts by central banks worldwide.
Our client letter provides a quarterly market update including insights into global markets, lower inflation, and the beginning of interest rate cuts by various central banks around the world.
Here's a deeper look at the factors at play to start the year.
2023—the year in review
he markets have been volatile recently because inflation has not declined as expected, and interest rates remain high. Investors had thought central banks would have started discussing interest rate cuts by now, but that has yet to happen.
Since the beginning of the year, Canadian and U.S. economic data has pointed to stubborn inflation resulting in market pricing in more interest rate hikes than expected.
The first quarter (Q1) of 2023 was a rollercoaster ride for investors. Market volatility unfolded following U.S. and European banking turmoil, and interest rates and inflation climbed—evoking investor fears about financial stability.
2022 was a tumultuous year for investors, to say the least. Markets around the world were affected by high inflation, rising interest rates, and concerns about slowing economic growth in 2023.
At the beginning of the year, we expected the start of a rate tightening cycle by global central banks. What we hadn’t expected was above-average interest rate increases, the invasion of Ukraine and its impact on energy and food prices, and supply chain disruptions caused by the zero-COVID policy in China...
Humans have 3 ways of dealing with conflict: fight, flight, or freeze. In this bear market, many investors might be in freeze mode, keeping cash on the sidelines as global markets continue their rough ride.
An uphill start to 2022: War in Ukraine and Fed rate tightening. The first few months of 2022 have been rough for investors.