– Global equities and fixed income are starting 2025 with a decline, while commodities are up sharply in higher oil prices.
– In a mainly down week for sectors, styles, and factors – Energy, Healthcare, and Materials stocks climbed.
– International equities outperformed US stocks last week. Still, over 60% of countries have officially entered correction territory.
– Commodities have started the year with a strong start – crude oil is up nearly 7% ytd. Treasuries have continued to sell off, and the 30Yr is flirting with 5% yields.

– 2024 was another dominant year for U.S. equities, climbing more than 25%. The average asset class performance, excluding U.S. stocks, was between 6% and 7%.
– Diverging outcomes emerged among styles and factors, with most of the spoils favoring growth and large-cap stocks. The cap-weighted S&P 500 outperformed the average stock over the last two years by the widest margin since 1999.
– International equities lagged U.S. stocks, failing to generate double-digit returns. Developed markets underperformed U.S. Treasury bills. Argentina was a notable exception, with its stock market doubling due to President Milei’s reforms.
– Long-term Treasury yields finished the year at their highest levels, defying the typical script for how bonds react to Fed rate cuts. The dollar closed out the year at two-year highs.