In Q4 2024, the U.S. stock market stood out as a beacon of resilience, achieving a 2.5% increase in market capitalization while most global markets experienced sharp declines. The global average market capitalization fell by -2.6%, with significant losses in Denmark (-21.4%), Brazil (-19.6%), and South Korea (-17.9%). Notable drops were also seen in the EU (-10.6%), China (-5.9%), and Japan (-4.7%). This divergence underscores the U.S. market’s relative strength and adaptability in the face of broader economic challenges.
My Take
The U.S. market’s performance reflects strong corporate earnings and investor confidence and the relative strength of the U.S. dollar, which appreciated by approximately 6.6% against a basket of major currencies in 2024. This currency strength likely attracted international investors seeking safer assets amid global economic turbulence. The combination of economic stability and a robust dollar enhances the strategic appeal of U.S. equities as both a growth opportunity and a hedge against volatile international markets.
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Credit: Visual Capitalist
This post reflects my own thoughts and analysis, whether informed by media reports, personal insights, or professional experience. While enhanced with AI assistance, it has been thoroughly reviewed and edited to ensure clarity and relevance.