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By Garey J. Aitken, CFA | Michael Richmond, CFA
Energy Reversal Concludes Strong 2024 – Fourth Quarter 2024
Market Overview
North American equity markets ended a strong 2024 on a high note. The S&P 500 and S&P/TSX Composite Indexes produced positive total returns of 9.1% (CAD) and 3.8% respectively in the fourth quarter of 2024. Both indexes again set all-time highs in December prior to fading into the holidays.
While both major indexes moved higher, the underlying economic backdrop for Canada and the U.S. continues to diverge. In the U.S., the re-election of Donald Trump and a Republican sweep of both houses of Congress clear a path for a slate of pro-business polices that have invigorated the market’s animal spirits. Strong GDP and employment growth, and inflation persistently above target, resulted in the Federal Reserve taking a more hawkish tone in their December policy release,…
