Scope: AAA rating

2024 was remarkable for the capital markets in many respects: in the US, we can look back on one of the best stock market years in history - once again supported by the Magnificent 7. What can we expect for 2025? A view from CIO Karin Kunrath.

In 2024, stock markets in most Emerging Markets performed well or very well, particularly in Asia. Taiwan and Turkey stood out with strong price increases, while Chinese equities recovered sharply. India's stock markets had a solid year, while Latin America, especially Brazil, stood out due to underperformance and currency losses.

Megatrend equities have experienced several volatile market phases in recent years and a very positive equity environment in the last twelve months. The topic of artificial intelligence has been a particular focus for many investors. With the election of Donald Trump as President of the USA, there is new potential for surprises. These can have both positive and negative effects on equities in the megatrends segment.

High yield bonds (i.e. bonds from less creditworthy and therefore more risky issuers) have been a sought-after investment instrument for a long time. But, is it currently still worth investing in high-yield bonds?