The global economy has started the year on stronger economic footing than 2024, with the major economies shrugging off the effects of central bank tightening. The better-than-expected economic outcome led to strong returns in developed equity markets, with the US the standout performer. The best sectors from 2023 – Technology and Financials – continued to lead the pack in 2024, with markets ending the year with unusually high valuations and market concentration.

If 2024 was a continuation of 2023, the year ahead appears well poised for change. In Australia, we will head to the polls with the likely prospect of a change in government or a hung parliament. In America, President Trump’s return to the office signals a dramatic shift in policy on Trade, Immigration and Security.

Several years of consistent equity market leadership is colliding with an upending of the prevailing political order. This creates a nuanced outlook for investors that will vary across country and sector in the year ahead. We expect to see a change in equity leadership as yesterday’s winners meet new obstacles in the form of regulation and competition.

To read the Equities in-depth report, click in the following link: https://bit.ly/43gmNPk