The start of 2024 has delivered a mixed bag in terms of returns. Developed equity markets were generally positive, (except for the UK), while it was a much tougher start to the year for emerging markets, which sold off in the region of -4.0%.
December was a “sea of green” with the majority of assets delivering positive returns. Markets were buoyed by the cooling of inflation and expectations for dovish monetary policy in 2024.
Most asset classes rallied in November due to expectations that interest rates may have peaked and will be cut next year.
October proved to be a challenging month for most asset classes as geopolitical risks rose and concerns about ongoing inflationary pressures persisted.
In general September was a challenging month for most asset classes, some did manage to deliver positive returns, but this was a more a function of currency moves enhancing returns for sterling investors, rather than positive performance from the underlying investments.
August proved to be a difficult month for equity markets as volatility returned. For UK investors, all the major countries / regions recorded losses, with Europe and North America fairing better than Asian and emerging market countries.