2024 Q4 Market Review

By Schultz Collins Investment Counsel on February 7, 2025

Schultz Collins 4th Quarter 2024 Market Review

Globally, stock returns were negative for the quarter but ended the year with above average double-digit returns.

The global stock market, as measured by the MSCI All Country World Index, fell by 0.89% in the quarter, but ended 2024 up 17.98%.

In the U.S. market, the S&P 500 Index, an index of large company stocks, increased 2.41% for the quarter and 24.96% for the year. Small companies in the United States as measured by the Russell 2000 Index, increased 0.33% for the quarter and up for the year by 11.51%. The Dow Jones U.S. Select Real Estate Investment Trust Index, a benchmark for U.S. real estate performance, ended the quarter in negative territory down 5.93% but up 8.09% for the year.

Large and medium-sized company stocks in international developed countries, as proxied by the MSCI Europe, Australasia and Far East Index, underperformed U.S. stocks in the fourth quarter and for the year. For the fourth quarter, the MSCI index fell 8.06% and up 4.34% for 2024.

Stocks in emerging market countries, as measured by the MSCI Emerging Markets Stock Index, fell 7.84%. Fortunately, the emerging market index returned 8.03% for the year.

International and U.S. bond returns were lower for the quarter, likely due to the slower than expected rate of disinflation. In the U.S., headline inflation reported by the U.S. Bureau of Labor Statistic, fell from an annual rate of 3.4% in the spring to an annual rate of 2.7% in December. While the trend is positive, the current level of inflation is above the Fed’s target of 2%. The European Central Bank reported Euro-area inflation remained at 2.4% at the end of year, due to persistently higher wages and prices in certain sectors.

Returns in the U.S. bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, fell by 3.06% in the quarter and up a 1.25% for the year. Intermediate-term corporate bonds, as proxied by the Bloomberg Barclays U.S. Corporate Bond Index, fared better down just 1.40% for the quarter and higher by 4.21% for the year.

The global bond market, as measured by the World Government Bond Index, underperformed all the major indexes with returns falling 5.44% for the quarter and down 2.86% for the year.

Many market commentators see the yield on U.S. 10-year Treasury note as a proxy for expected long-term inflation and real economic growth in the U.S. This means inflation expectations may influence yields on the benchmark bond and that seems to be the case last quarter. At the beginning of the fourth quarter, the 10-year Treasury yield was 4.10% but ended the year at 4.58%.

Goodbye, Davis and Louise

Finally, we want to say a special thank you and congratulations to Davis Reimer and Louise Rothman-Reimer on their retirement. Davis and Louise, we thank you for being wonderful colleagues and friends. Our clients also thank you for your dedication to them and for your warm caring spirit.

We wish you the very best on your new adventure in life. Congratulations.