Crypto, stocks, gold, real estate: the annual balance sheet 2024
The US presidential election, mega trends such as AI or the “weight loss injection,” sporting events, falling interest rates and economic policy uncertainties shaped market activity and the performance of individual asset classes. Accordingly, we are looking back on an exciting — and sometimes very profitable for investors — year 2024. Find out what important developments there have been and what trends are emerging for 2025.
Gold price: security in uncertain times
Gold, for example, lived up to its name as a crisis currency. In the first half of the year in particular, the precious metal benefited from the weakness of the US dollar and continued demand as a safe haven. Central banks around the world also increased their gold reserves, which further supported demand. As a result, the price of the yellow precious metal even reached a fresh record high of around 2,800 dollars per troy ounce at the end of October 2024 - supported by geopolitical uncertainties and inflation fears. As a result, the price of gold rose by around 30 percent over the course of the year.
Many analysts are also optimistic about 2025: As a result of massive gold purchases by many central banks, geopolitical trouble spots and further falling interest rates, the precious metal could become even more valuable. Some sources even hold A gold price of between 2,900 and 3,000 dollars/ounce by the end of next year is realistic.
Equity markets: Mega trends fuel development
While economic growth in many industrialized countries stagnated in 2024 and geopolitical uncertainties and the polarizing US presidential election weighed on markets, investors were optimistic. The DAX rose by +22%, the Dow Jones gained +16% and the Nasdaq 100 +31% (as of December 13, 2024).
Artificial intelligence, the defense industry and the “weight-loss injection” were among the central topics on the stock markets in 2024. Microsoft, Alphabet, Amazon and Nvidia achieved price gains in the two to three-digit range, driven by groundbreaking developments in medicine, big data, diagnostics and artificial intelligence. In particular, the mega trend of AI is likely to be with us for some time, as the economic and social potential remains enormous.
Companies such as Rheinmetall and Hensoldt are benefiting from the tendency in many countries to further increase arms spending. As a result, Hensoldt shares have risen by around 40% since January and Rheinmetall has even gained well over 100%.
Large pharmaceutical companies such as Novo Nordisk and Eli Lilly are regarded as pioneers of the “slimming syringe”, which are sold with great success under the trade names Wegovy and Mounjaro and bring companies billions in sales. That is why Novo Nordisk replaced French luxury goods manufacturer LVMH in the top position at the end of 2023 and remained the most valuable European group in 2024.
Even away from the exemplary sectors mentioned above, the markets achieved solid returns, with the easing of interest rate policy by the Federal Reserve primarily supporting growth figures. The big question now is, of course: Will the bull market continue like this in 2025? Blackrock is positive about this: “Even if earnings forecasts are revised downwards over the course of the year, we expect broad-based earnings growth as regions outside the USA improve from low levels. However, we maintain our tactical preferences for the next six to twelve months — even taking structural factors into account — and believe that US outperformance is likely to continue next year.”
Crypto & Coins: All-time high thanks to Trump
In 2024, the crypto market experienced an impressive recovery. Bitcoin grew massively and even broke the magical limit of 100,000 dollars. This development was initially caused by the Introduction of several Bitcoin ETFs, which has already invested over 13 billion dollars, is fueled. However, political developments played a particularly important role: Donald Trump won the presidential election and positioned himself as a crypto advocate with ambitious plans to make the USA the “crypto capital.” Elon Musk also drove the hype about cryptocurrencies and meme coins such as Dogecoin through targeted statements on Platform X.
Despite the rally, care must be taken. Should political promises not be fulfilled or investors' risk affinity decreases, cryptocurrencies could quickly spiral back into a downward spiral. For speculative investors, however, this area remains an exciting option with high profit and loss potential.
Real estate: boom in major cities and on Mallorca
Following an interest-related slump in 2023, the real estate markets picked up steam again in 2024. For example, residential property prices in Germany rose significantly again in the third quarter of this year. From July to September, condominiums rose by 1.4% compared to the previous quarter, according to a study by the Kiel Institute for the World Economy (IfW). Large cities are particularly expensive - new apartments there have already almost reached pre-crisis levels: Prices rose again in eleven of the 15 largest German cities in the third quarter - peaking by +3.7% compared to the second quarter.
By the way, the location is particularly sunny in popular holiday regions such as Mallorca: According to a Market study by Porta Mallorquina Real Estate The average price per square meter for a holiday property on an island in January 2024 was around 5800 euros. This was 1.7% more than in the previous year. The luxury segment remains the price driver, with an increase of around 13%.
According to experts, the real estate market could continue to gain momentum in many markets in 2025. Especially as falling interest rates worldwide could make loans affordable again and boost demand for real estate accordingly.
Diversification pays off
2024 once again showed that diversification is the key to investment success. While traditional markets offered stability, volatile investments such as cryptocurrencies and individual stocks attracted with high return opportunities. What surprises 2025 will hold are, of course, written in the stars. However, investors are in any case well positioned with a broadly diversified portfolio that cushions the risks of individual investments. For example, a portfolio could consist of stocks or equity funds or ETFs, a small portion of cryptocurrencies, gold and alternative tangible assets. These include, for example Private market investments such as private equity or collectibles such as art or luxury watches. FINEXITY offers private investors the opportunity to invest in these and other assets that were previously reserved primarily for institutional investors. Simply by using digital shares in the corresponding assets.
