The Power of Human Ingenuity. By David Booth.

Against a backdrop of geopolitical tensions, economic challenges, and electoral uncertainty, 2024 proved the resilience of public financial markets and the power of human ingenuity once again. Markets continued to do what they do best: efficiently process information and set fair prices, rewarding long-term investors with positive returns.

The year started with concerns about stubbornly high inflation, changes in interest rates, and the ripple effects from conflicts in Ukraine and the Middle East. Some observers speculated this could be the beginning of a prolonged economic downturn. But as the months unfolded, businesses adapted and innovated. Entrepreneurs launched new ventures. Scientists announced groundbreaking discoveries. Once again, the power of human ingenuity kept the economic engine going. While markets can be hard to predict, people are constantly seeking to solve problems and create opportunities.

Market performance in 2024 reflected the power of human ingenuity. The S&P 500 returned a robust 28.1% through November, while the global stock market, as measured by the MSCI All Country World Index, was up 20.3%. Even bonds, after struggling earlier in the decade, delivered solid returns (4.2% as measured by the Bloomberg Global Aggregate Index). Investors with broadly diversified portfolios who stayed invested through the volatility of recent years were rewarded for their patience and discipline.

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