Reflecting on 2024: A Year of Surprises and Solid Returns
I hope you all had a wonderful December break! I spent mine in Peru, celebrating Christmas with dear friends and family. It was a joyous time, especially for the kids, who had an absolute blast. Taking a few days to disconnect from the hustle of the markets, whether in the mountains or at the beach, was crucial for me to recharge.
The Market’s Unexpected Turn in 2024
Looking back at 2024, it was a year that defied many early predictions from investment houses during Q1. Contrary to those forecasts, several asset classes experienced remarkable growth:
- Bitcoin’s Stellar Performance: Was 2024 the year of Bitcoin? Here’s how the numbers stack up:
- Bitcoin soared by 121.9% throughout the year, making it the standout performer among major asset classes. However, my perspective, shared by several of my investor friends, is that Bitcoin has transitioned from a revolutionary asset to a speculative one, especially under the current U.S. regulatory framework. We keep our allocation below 5% and plan to maintain this cautious stance until the market dynamics shift.
- Gold Shines Bright: Gold was my portfolio’s MVP this year, (after the constant allocation to SP500) with returns of 23.3%. This performance underscores its enduring value as a safe-haven investment amidst global economic uncertainties.
- Chinese Equities Surge: September 2024 was particularly notable for Chinese stocks, which rallied impressively due to strategic government interventions aimed at economic recovery.
- U.S. Dollar and Global Markets: The U.S. Dollar gained strength over the year. Meanwhile, the MSCI World Index lagged behind the S&P 500, highlighting the continued dominance of U.S. equities in global markets.
Visualizing 2024’s Market Performance
Same chart without BTC
Key Equity Indexes – Last 6 months
Looking Forward
As we move past 2024, it’s clear that while some assets like Bitcoin continue to attract headlines. The strength of the U.S. Dollar and the performance of U.S. equities versus the broader global market provide critical insights for portfolio adjustments in the coming year. European equities are cheap for a reason and during 2025 are stronger than SP500.
2025 YTD – Equities and bonds total return index, USD
For investors, maintaining a diversified portfolio while keeping an eye on regulatory changes: particularly if government policies continue to support market recovery.
If you wish to learn more about my personal allocation send me a message.
Enjoy the rest of your break if you still have one, and may your investments be as rewarding as your time with loved ones!
Disclaimer: The views expressed are those of the author and do not necessarily reflect official investment advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
