Investors had a good 2024 and much of that was due to the actions of a handful of giant American technology companies.
The global stock market is up 19 percent, as measured by the MSCI World Index, and 74 percent of that is now made up of the U.S. stock market.
That proportion has increased thanks to the exceptional growth generated by US stocks, with the S&P 500 generating a return of 22 percent in 2024.
These statistics show how diversifying and supporting the index paid off well last year. But many investors also like to pick individual stocks, so where can they look for returns in an increasingly concentrated and rising market?
Investment platform Hargreaves Lansdown has revealed its Five actions to watch for 2025*and in this video, This is Money’s Simon Lambert talks to senior equity analyst Matt Britzman to find out why he chose some of the companies on that list.
It was another stellar year for the US megacaps and the Magnificent Seven, Nvidia, Meta, Apple, Amazon, Alphabet, Microsoft and Tesla, but investors are wondering when this streak will come to an end.
Nvidia contributed 22 percent of the S&P 500’s gains last year thanks to its own 171 percent rise in its share price, according to S&P Dow Jones Indices senior analyst Howard Silverblatt.
However, analysts at Hargreaves Lansdown still believe the US chipmaking giant can continue to deliver results for investors this year. Britzman explains why and also looks at two stock picks closer to home that offer an opportunity for growth and value in the UK.
> Get the full Five Shares to Watch in 2025 report from Hargreaves Lansdown*
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