As we settle into the new year, it’s a good opportunity to look back over 2024 and evaluate some of the headlines that impacted the market. What happened that could shape 2025 and what should you be thinking about when it comes to your own portfolio?

 

What happened in the market in 2024?

  • The world’s central banks have mostly managed to calm inflation through higher interest rates. Inflation now closer to global targets but it’s not quite there yet
  • Governments across the globe and in the UK have been spending record amounts on interest repayments
  • Geopolitical jitters and an economic slump in China have kept global markets on their toes

 

What does this mean for 2025?

Long-term returns are not driven by the latest headlines – interest rate decisions and country-by-country growth data probably won’t impact your returns in five years’ time. However, the bigger foundational changes like how governments are playing more of a role within markets or how AI is revolutionsing industries almost certainly will.

Markets are often driven by shared assumptions that shape confidence and push prices. A good tip: don’t always follow the crowd. Build a diversified and well-balanced portfolio so that you can weather different scenarios and minimise the effects of market downturns, and set yourself up to seize opportunities when the unexpected plays out.

You can start your investing journey today with Moneybox by choosing one of our three Starting Options – Cautious, Balanced and Adventurous. These are premade portfolios that contain a mix of tracker funds, helping you to build a well-balanced portfolio, and have been built by experts to suit various risk and reward appetites.

 

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Capital at risk. All investing should be long term. The value of your investments can go up and down, and you may get back less than you invest.

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