Macro Insights Weekly - Pitfalls of an everything rally

With 10%+ year-to-date gains across a wide range of asset classes, 2024 has turned out to be much better-than-expected for investors. What are the drivers and how sustainable is this?
Rally in precious metals show heightened geopolitical concerns.
Industrial metals rally reflects green energy infrastructure buildup.
Stocks are underpinned by strong earnings expectations and AI exuberance.
Credit spread compressions are driven by attractive absolute yields and soft-landing bets.
But dizzying valuations have pitfalls. The higher they go, the harder they may fall.