In the fourth quarter, the S&P 500® rounded the corner on its second straight year of 20%-plus gains––reaching 24.99% for 2024 with a 2.39% return––marking its best two-year performance since 1997-1998. In response to the election of Donald Trump, investors have embraced the prospects of deregulation, reductions in corporate taxes, and a renewed focus on trade protectionism aimed at prioritizing domestic industries. With inflation data still well above the Federal Reserve’s 2% target rate, the coming year could put upward pressure on medium and long-term bond yields. In 2025, the interplay between asset classes will remain a defining characteristic of the global investment landscape, making a well-structured, long-term, and diversified asset allocation essential for investors hoping to navigate this evolving environment with confidence.
