Year in review
Navigating 2025: Some key insights from the past year
December 31, 2024
As 2024 ends, we’re sharing articles that resonated most with readers and that we believe remain relevant for investors in the new year. These pieces offer insights into global market dynamics, the importance of a balanced investment portfolio, and the resilience of the U.S. dollar, providing essential guidance when navigating any economic environment.
Our economic and market outlook for 2025: Global summary
Global inflation has slowed sharply in the past two years, resting within touching distance of 2% in late November. Our summary highlights Vanguard’s 2025 economic forecasts while discussing the current state of U.S. economic resilience, a favorable environment for bonds, and the “what’s next” question for U.S. stocks after several years of strong returns.
The global 60/40 portfolio: Steady as it goes
The 60/40 strategy—maintaining a globally diversified portfolio of 60% stocks and 40% bonds—returned to positive territory after a painful period for balanced investors in 2022. The asset mix gained a 29.7% cumulative return between year-end 2022 and September 2024, when this piece was released. This asset mix has generally provided solid long-term gains.
Why the U.S. dollar remains a reserve currency leader
How likely is it that the U.S. dollar will retain its position as the world’s primary reserve currency in the years ahead? In this April interview, Vanguard’s Roger Aliaga-Díaz, chief economist for the Americas, and Josh Hirt, senior economist, discuss the dollar’s dominance, its widespread use as a reserve currency, and the potential rise of competing currencies.
Notes:
All investing is subject to risk, including possible loss of principal. Diversification does not ensure a profit or protect against a loss. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
Investments in bonds are subject to interest rate, credit, and inflation risk.
Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets.
Past performance is no guarantee of future returns.
