U.S. equity markets posted a strong 2024, with the S&P 500 frequently hitting new all-time highs throughout before tapering off 3.4% by year-end. Despite this the index rose 25%, notching a second consecutive annual gain of 20%-plus — a rare achievement. As has generally been the case for some time, smaller US companies and those overseas have lagged.

As discussed three months ago, the Federal Reserve started a much anticipated rate-cutting cycle in September with a 50bp reduction in short-term rates.

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