2024 Q4 Quarterly Investment Report

An excerpt from our 2024 Q4 Quarterly Investment Report: 

Propelled by a continued surge in AI-related stocks, the U.S. equity market gained 25% in 2024, further stretching valuations. Advanced and emerging equity markets rose moderately, extending a long period of underperforming the U.S. market. The Fed’s decision to cut its policy rate by 25 basis points in December was widely anticipated, but the hawkish tone of its forward guidance was not, contributing to a steepening U.S. Treasury yield curve and increased policy uncertainty. The prospect that expansionary fiscal policies under the new administration might be met by tighter Fed policy fueled an increase in longer-term yields. This constellation of policies, combined with expectations for an increase in tariffs, also contributed to an appreciation of the U.S. dollar against most major currencies. Gold and Bitcoin prices were up sharply in 2024 and closed the year near record highs. Oil prices were little changed.