Fox Hill's 2024 Market Commentary: A Year in Review

As we reflect on 2024, the financial markets presented both challenges and opportunities. Our newsletters tracked several key themes that shaped the economic landscape throughout the year:

Q1 2024: Setting the Stage

The year began with continued focus on interest rates and inflation. In January, we discussed the importance of maintaining a long-term investment approach despite market volatility. February saw us analyzing China's economic policies, particularly their response to the Evergrande crisis and its global implications. March brought significant developments in technology, with Google's AI chatbot Gemini and potential partnerships with Apple making headlines.

Q2 2024: Adaptation and Growth

The second quarter witnessed key shifts in monetary policy. The European Central Bank and Bank of Canada implemented rate cuts, though the Federal Reserve maintained its cautious stance. April's CPI data and housing market analysis revealed persistent inflationary pressures despite cooling trends. May saw us exploring the transformative impact of AI on global finance, with companies like Microsoft leading the charge in technological innovation.

Q3 2024: Market Resilience

Summer brought continued strength in the technology sector, particularly in AI and cybersecurity. We covered significant developments in the healthcare sector, especially the booming weight-loss drug market led by companies like Novo Nordisk and Eli Lilly. The labor market showed signs of moderation while maintaining overall robustness, with unemployment remaining at historically low levels.

Q4 2024: Year-End Momentum

The final quarter saw several notable developments:

The Federal Reserve's pivot to a more hawkish stance in their December meeting
Strong consumer spending during the holiday season
Technological advancements in AI and nuclear energy
Positive developments in utility stocks and continued growth in the tech sector

Key Market Trends

Throughout 2024, several trends remained consistent:

AI Innovation: The continued rise of artificial intelligence across sectors
Interest Rate Environment: The "higher for longer" narrative gradually shifting toward potential cuts, of which we saw three
Consumer Resilience: Strong spending despite economic headwinds
Energy Sector Evolution: Growing focus on nuclear and alternative energy sources

Sector Performance

Notable sector performances included:

Technology: Strong returns driven by AI advancement
Utilities: Exceptional performance throughout the year
Healthcare: Growth in innovative treatments and technologies
Energy: Evolution toward cleaner energy solutions

Looking Ahead to 2025

As we look toward 2025, several factors suggest continued opportunities for growth:

Further development in AI and technological innovation
Potential monetary policy shifts as inflation moderates
Continued strength in consumer spending
Growing emphasis on sustainable energy solutions

Our investment approach remains focused on identifying high-quality companies with strong fundamentals while maintaining diversification across sectors and asset classes. This strategy has served our clients well through 2024's various market conditions and positions us well for the opportunities and challenges ahead.

If you have questions or want to discuss your financial situation, please contact your Fox Hill advisor.

This commentary is for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results.