The fourth quarter of 2024 presented both challenges and opportunities for institutional investors. This review summarizes key market developments and their implications for portfolio risk management.
Market Overview
Global markets experienced increased volatility during Q4, driven by geopolitical tensions, central bank policy shifts, and evolving economic data. Risk assets generally performed well, though with significant sector dispersion.
Key Risk Themes
- Interest rate sensitivity across asset classes
- Concentration risk in technology sectors
- Emerging market currency volatility
- Credit spread widening in high-yield segments
Outlook
Looking ahead, we anticipate continued volatility with particular attention to policy normalization, corporate earnings trajectory, and geopolitical developments. Active risk management remains essential.