Market Insights: 2024 - A Year In Review

Milestone Wealth Management Ltd. - Dec 20, 2024

Market Insights

Macroeconomic and Market Developments:

North American markets were negative this week. In Canada, the S&P/TSX Composite Index fell 2.62%. In the U.S., the Dow Jones Industrial Average fell 2.25% and the S&P 500 Index dropped 1.99%.
The Canadian dollar fell again this week, closing at 69.6 cents vs 70.2 cents last week.
Oil prices fell this week. U.S. West Texas crude closed at US$69.52 vs US$71.11 last week.
The price of gold also dropped this week, closing at US$2,643 vs US$2,667 last week.
This week it was the U.S. Fed’s turn in the spotlight. The central bank elected to lower its benchmark interest rate by 0.25% to a range of 4.25% - 4.5%. However, investors were disappointed by the Fed forecast indicating only two more interest rate drops in 2025. In related news, the Fed’s preferred inflation gauge the Personal Consumption Expenditures index (PCE) came in below expectations at 2.4% vs 2.5% expected by economists, while the Core PCE cam in at 2.8%.
Canada’s inflation rate eased in November, with the Consumer Price Index (CPI) slowing to 1.9% from a year ago, down from 2.0% in the October-to-October timeframe. Grocery prices were up 2.6% from a year ago and shelter costs increased 4.6%.
U.S. Real GDP growth in Q3 was revised higher to 3.1% from a prior estimate of 2.8%. The largest positive contributions were consumer spending and government purchases.
Chipmaker Broadcom’s (AVGO) market capitalization has crossed over one trillion dollars, as a result of its guidance of up to $90 billion in revenue from custom AI chips by 2027.
Nissan shares surged following media reports that Honda and Nissan are potentially considering a merger. Nissan shares gained 23.7% on Tuesday, notching the firm’s best day since at least 1985, whereas Honda shares slipped 3%.

Weekly Diversion:

Check out this video: Largest gingerbread village drone display breaks world record

2024: A Year In Review:

As 2024 comes to a close, Canada has seen a diverse array of notable events and milestones. Here's a wrap-up of some of the most interesting Canadian happenings this year as well as some global developments:

Sports Achievements:

Olympic Success in Paris
Canadian athletes shone at the 2024 Paris Olympics, winning 27 medals and highlighted by Summer McIntosh:

Won 4 medals: 3 gold, 1 silver
First Canadian to win three gold medals at a single Olympic Games
Set Olympic records in 200m butterfly and 200m individual medley
Gold medals in 400m individual medley, 200m butterfly, and 200m individual medley
Silver medal in 400m freestyle

NHL Stanley Cup Highlights
The Edmonton Oilers pushed the 2024 Stanley Cup Final to 7 games against the Florida Panthers but ultimately fell short. This was the Florida Panthers' first championship.

Cultural Celebrations:

Calgary Stampede
The world's largest rodeo, the Calgary Stampede, took place from July 5-14, living up to its reputation as "the greatest outdoor show on Earth" and setting an all-time attendance record of 1,477,953 visitors surpassing the previous record of 1,409,371 visitors in 2012.

Taylor Swift

Taylor Swift's final show of her Eras Tour was on Sunday, December 8, 2024, at BC Place Stadium in Vancouver, British Columbia. The tour spanned 149 shows across five continents and grossed over $2 billion.

Political and Economic Developments:

NDP Ends Agreement with Liberals
On September 4, the New Democratic Party ended its supply and confidence agreement with the Liberal government of Prime Minister Justin Trudeau.

Tariffs on Chinese Electric Vehicles
In August, Canada announced a 100% tariff on imports of Chinese-made electric vehicles and a 25% tariff on Chinese steel and aluminum.

Political Turmoil

Finance Minister Chrystia Freeland resigned, causing political upheaval for Prime Minister Justin Trudeau's government.
Trudeau faced calls to resign as Liberal Party leader before the upcoming election.

Economic Challenges

The Fall Economic Statement reported a deficit of $61.9 billion for 2023-24.

Environmental Disasters:

2024 was Canada's most expensive year for weather disasters, with extreme events causing over $7.7 billion in insured damages.

In Alberta, the Jasper fire alone caused an estimated C$880 million in insured damages.

Hurricane Debby struck eastern Canada in August, becoming the costliest climate event in Quebec history.

Historical Milestones:

25th Anniversary of Nunavut
April 1, 2024, marked 25 years since the creation of Nunavut, Canada's largest and northernmost territory.

75th Anniversary of NATO
Canada celebrated its 75-year membership in the North Atlantic Treaty Organization, which was formed on April 4, 1949.

100th Anniversary of the Royal Canadian Air Force
The Royal Canadian Air Force commemorated its centennial on April 1, 2024, marking a century of providing airpower to the Canadian Armed Forces.

Global Politics and Elections:

The year was marked by a wave of elections across more than 60 countries, representing nearly half of the world's population.

Notable outcomes included:

United States: Donald Trump defeated incumbent Vice President Kamala Harris, winning both the Electoral College (312 to 226) and the popular vote (49.8%). This marked Trump's return to the presidency after a four-year hiatus, making him the first president since Grover Cleveland in 1892 to serve non-consecutive terms.
United Kingdom: The Labour Party won an overwhelming parliamentary majority, ending 14 years of Conservative Party rule.
India: Prime Minister Narendra Modi and his Bharatiya Janata Party secured a third consecutive victory but were forced into a coalition government.
South Africa: The African National Congress failed to win a majority of National Assembly seats for the first time since the end of apartheid.
Japan: The Liberal Democratic Party and its coalition partner lost their majority in parliament.
France: President Emmanuel Macron's snap election backfired, with his centrist alliance losing ground to both left-wing and right-wing parties.
Mexico: Claudia Sheinbaum became the country's first female president in what was the largest election in Mexico's history.
European Parliament: Far-right parties performed well, particularly among young voters.
Russia: Vladimir Putin won re-election with 87.3% of the vote in an election widely considered to lack real opposition.
Botswana: The Botswana Democratic Party lost power for the first time in nearly 60 years.

Ongoing Conflicts

Russia-Ukraine War: The conflict entered its third year with no clear resolution in sight.
Israel-Hamas War: Fighting expanded beyond Gaza, with Israel conducting airstrikes on Iran in April.
Syria: After 14 years of civil war, opposition offensives led to the fall of Bashar al-Assad's regime.

Economic Landscape

Global Growth: Economic expansion remained weak, with China's downturn impacting emerging economies.
Financial Conditions: Slowly declining interest rates, easing inflation, and a strong US dollar characterized the financial climate.

While 2024 presented numerous challenges, it also showcased the resilience of international cooperation and the potential for positive change in the face of adversity.

Sources: Olympics.ca , canadianaffair.com, ca.news.yeahoo.com, CBC News, Forbes, Government of Canada, CNN World, Statista, NPR, BBC

DISCLAIMER: Investing in equities is not guaranteed, values change frequently, and past performance is not necessarily an indicator of future performance. Investors cannot invest directly in an index. Index returns do not reflect any fees, expenses, or sales charges. Opinions and estimates are written as of the date of this report and may change without notice. Any commentaries, reports or other content are provided for your information only and are not considered investment advice. Readers should not act on this information without first consulting Milestone, their investment advisor, tax advisor, financial planner.