A “stimulating” year ahead?

Macroeconomic update for December 2024 

As the world enters the final stretch of the year, investors can not only reflect on momentous events – ranging from long-awaited interest-rate cuts to closely watched elections around the globe – but also on a positive market performance that appears poised to carry into 2025. Vontobel’s Multi Asset Boutique explains why it remains optimistic about the coming year, citing major spending programs from the world’s two largest economies, and how it has positioned its asset allocation.

Key Takeaways

1. Stimulus, stimulus, stimulus
   Aside from government spending in the US and China, major tech companies are also splurging on artificial intelligence, and central banks are expected to continue with rate cuts in 2025.

2. Global growth
   Global gross domestic product growth should be supported by stimulus measures, in particular from the US and China, along with ongoing interest-rate cuts by central banks worldwide  

3. Opportunities in stocks 
   The Vontobel Investment Committeecurrently favors opportunities in equities rather than fixed income.

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