November was a good month for markets with many global equities delivering strong gains, meaning that multi-asset portfolios in the round performed fairly well during the month. The US corporate earnings season was also a tailwind for markets: US economic growth has been strong with positive liquidity cycles and Federal Reserve rate cuts. These factors have driven investment flows into US equities, which have outperformed.
Next year may well bring a more broad-based performance delivery in equity markets, which should support a more active approach in asset allocation than the more dominant passive approach seen in 2024.
The UK appears on course for a fairly reflationary picture in the next 18 months, which has high nominal GDP. China has implemented aggressive policy stimulus in recent weeks, which could well be a positive in particular for luxury companies.
In fixed income, short and intermediate dated maturity bonds may well continue to be favoured going into 2025 as they could be likelier to deliver the returns that their bond coupons imply.
The value of securities and their income can fall as well as rise. Past performance should not be seen as an indication of future results. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
