Sarasin - Six Minute Strategy: Making sense of bull market resilience
In 2024, we’ve endured wars, political crises, and trade battles, yet global equity markets have continued to push forward.
In our latest Six Minute Strategy video, Guy Monson, Chief Market Strategist, discusses this global market resilience, most recently seen following Donald Trump’s decisive victory in the US presidential race.
Most commentators had expected market turmoil in the face of an unconstrained Trump White House. Instead, equity markets rallied, while equity and bond volatility actually fell.
Investors, it seems view the president-elect less as a source of instability and more as a potential catalyst for growth. This sentiment has translated into action: US equities have seen the largest monthly inflow on record.
We maintained our overweight equity positions throughout the election period, and that decision has proven rewarding. However, as we look toward 2025, Guy suggests that we must balance optimism with caution. He outlines some areas for concern – including US equity valuations, and the political and economic challenges in Europe. All this informs how we are positioning ourselves for the year ahead.
Important information
If you are a private investor, you should not act or rely on this document but should contact your professional adviser.
This document has been approved by Sarasin & Partners LLP of Juxon House, 100 St Paul’s Churchyard, London, EC4M 8BU, a limited liability partnership registered in England & Wales with registered number OC329859 which is authorised and regulated by the Financial Conduct Authority with firm reference number 475111.
It has been prepared solely for information purposes and is not a solicitation, or an offer to buy or sell any security. The information on which the document is based has been obtained from sources that we believe to be reliable, and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to their accuracy. All expressions of opinion are subject to change without notice.
The value of investments and any income derived from them can fall as well as rise and investors may not get back the amount originally invested. If investing in foreign currencies, the return in the investor’s reference currency may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results and may not be repeated. Forecasts are not a reliable indicator of future performance.
December 2024
Please note that these are the views of Guy Monson of Sarasin and Partners and should not be interpreted as the views of RL360.