Financial markets in 2024

In the 2024 financial market year, the previously high inflation values fell in or around the target range set by the central banks. Economic per­for­mance experienced mod­er­ate growth. This enabled the central banks to reduce key interest rates. In Switzer­land, this meant a reduction of 1.25%, which was more than expected, causing the 10-year rate to bounce back by 0.4% (see purple line in the graphic). In the USA, it was a reduction of 1.0%, remaining below ex­pec­ta­tions and causing the 10-year rate to rise by 0.7% (see light blue line in the graphic). This de­vel­op­ment led to high price gains in Swiss bonds, while the price returns of global bonds were negative. Credit spreads for loan in­vest­ments narrowed slightly over the year, and stock markets posted price gains on a broad scale. Swiss equities were less profitable than global equities, which were driven in particular by high returns on US equities. Global equities recorded an above-average return of +17% (see green line in the graphic). The geopolitical situation, rising government debt or fears regarding growth have provided short-term cushions in the meantime. Non-listed Swiss real estate saw price gains due to falling discount rates, while lower valuations in global real estate have now bottomed out following some difficult quarters. Private market in­vest­ments have gone through two difficult years with slightly negative returns. Demand for gold rose and the price rose sharply.