Investors had a good 2024 and a great deal of that was thanks to the shares of a handful of giant US tech companies.
The global stock market climbed 19 per cent, as measured by the MSCI World index, and 74 per cent of that is now made up of the US stock market.
That proportion has risen thanks to the exceptional growth delivered by US stocks, with the S&P 500 delivering a 22 per cent return in 2024.
These statistics show how diversifying and backing the index paid off handsomely last year. But many investors like to choose individual shares too, so where can they look for returns in an increasingly concentrated market that is riding high?
Investment platform Hargreaves Lansdown has revealed its Five shares to watch for 2025 and in this video, Simon Lambert, of This is Money, talks to senior equity analyst Matt Britzman to find out why it chose some of the companies on that list.
It was another stellar year for US mega-caps and the Magnificent Seven, Nvidia, Meta, Apple, Amazon, Alphabet, Microsoft and Tesla, but investors are questioning when this run will come to an end.
Nvidia contributed 22 per cent of the S&P 500’s gains last year thanks to its own 171 per cent share price rise, according to S&P Dow Jones Indices senior analyst Howard Silverblatt.
Yet, Hargreaves Lansdown’s analysts still believe the American chipmaking behemoth can continue to deliver for investors this year. Britzman explains why and also discusses two share picks closer to home that offer a UK growth and value opportunity.
> Get the full Five Shares to Watch in 2025 report from Hargreaves Lansdown
Y
***
Read more at DailyMail.co.uk