The Month in a Minute
For US markets, December was a tale of two halves, dropping initially before recovering most of their losses by the end of the month. Elsewhere, global shares finished 2025 strongly, capping their third straight year of double-digit gains. Despite this, both Wealthify Original and Ethical Plans slightly underperformed their benchmarks.
S&P 500 takes a hit, but gains from non-US markets help global shares finish 2025 with a bang.
They say all good things must come to an end and, sadly for investors, this was the case for the S&P 500 in December.
Following consecutive monthly gains since May 2025, the US’ flagship index 7-month streak ended, posting modest losses to end the year.
This drop in performance was driven by concerns over heavy spending from big tech companies, which caused a sharp sell-off in semiconductor and AI stocks.
Most of these losses were recovered by the end of the month, however, thanks to a 0.25% interest rate cut from the Federal Reserve and improving inflation data.
The UK cut its interest rate by the same amount, helping the FTSE 100 to a strong December. The European Central Bank’s rate remained unchanged, but this didn’t stop European markets delivering solid returns.
Asian markets also enjoyed a good month and, as the MSCI World Index rose around 1%, global shares finished 2025 strongly — managing their third straight year of double-digit gains.
Although Wealthify Original and Ethical Plans slightly underperformed their benchmarks, it’s important to remember that, as ever, our strategy for your investments in 2026 will be driven by data and long-term thinking — not emotion and knee-jerk reactions.
As a result, Plans are positioned to take advantage of new opportunities — and diversified to help provide protection in the event of any downturns.
With investing, your capital is at risk. Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
