We are already at the end of 2024, whew! Let’s rewind 2024 and see how various markets performed throughout this year. We hope this year has been an exceptional one for you 🙂
Inflation
Inflation continued its downtrend this year
The US CPI declined from 3.4% to 2.7%, while the US Core CPI declined from 3.9% to 3.3%. Although they haven’t reached the Fed’s target of 2%, they continue to move in the right direction.
Singapore’s CPI has also decreased from 3.7% to 1.4% this year, while the Core CPI declined from 3.3% to 2.1%.
Interest Rates
A new rate-cut cycle
With inflation declining, the Fed initiated a new cycle of rate cuts, starting with a 0.5% reduction in September. They lowered rates by an additional 0.25% in November and another 0.25% in December. The current target rate is 4.25-4.50%.
The Fed anticipates two more rate cuts in the coming year.
Equity Markets
An exceptional year for equity markets
The S&P 500 index has had an exceptional year, achieving multiple new all-time highs and increasing by over 20% despite concerns of a potential recession. This follows a strong performance in 2023.
The European market also did well, rallying by ~7% this year.
China and Hong Kong equities also performed very well this year, rallying by more than 17%, though they started from a relatively low level.
Singapore’s stock market also performed exceptionally, with the Straits Times Index (STI) up by more than 18% and hitting a 17-year high. Wow!
Cryptocurrencies
Bitcoin topped $100,000
This year was historic for the digital asset industry, as Bitcoin and Ethereum Spot ETFs were finally approved in the US.
Bitcoin performed very well this year and finally topped the $100,000 mark. Congrats to all hodlers!
Ethereum also performed well, rising from ~$2,300 to ~$4,000 this year.
Singapore REITs
Singapore REITs did not perform well
The iEdge S-REIT Leaders Index ended the year down >10% in 2024.
Despite the rally after the first Fed rate cut, the index fizzled out again towards the end of the year after the expectation that inflation may stay higher with the new Trump administration’s policies.
Singapore Residential Property Market
Robust Singapore residential property market
After a red-hot market in 2023, the Singapore residential property market continued to perform resiliently in 2024.
Both the HDB and private property markets saw consistent growth throughout the year.
We also witnessed one of the best new private property launches: Emerald of Katong, which sold ~99% of its units during the launch weekend.
Remarks
The year 2024 proved to be an ‘exceptional’ one for investors. Despite discussions of a looming recession casting a shadow over the economy, it turned out to be one of the best years for investors, with most asset classes delivering impressive returns.
As demonstrated this year, the market could keep climbing despite rising valuations. Timing the market is often complicated, and many retail investors might benefit more from ‘staying invested’ and riding the ups and downs along the way.
What can we expect in 2025?
Happy New Year 2025!
Thank you for your support and for being part of our journey together.
