2024 was a great year for many U.S. investors, but will the same strategies that worked so well keep working in 2025?

I'm Allison Nathan and this is Goldman Sachs exchanges.

To get their fresh outlooks for asset classes and portfolio strategies,

I'm sitting down with Christian Mueller-Klisman, who heads asset allocation research in Goldman Sachs research and Alexandra Wilson

Elizondo, co-chief investment officer of the multi-asset solutions business in Goldman Sachs

asset management. Alexander is joining me in our New York studio, and Christian is joining us remotely

from our office in London. Christian, Alexandra, welcome to the program and happy New Year.

Happy New Year. Happy New Year to you.

So it's the first podcast of the new year, and I cannot think of a better way to kick it off.

But before we get into our 2025 views, let's start with a quick recap of what worked well

and maybe not so well for portfolios in 2024.

Alexandra, maybe give us a quick sense of that.

Absolutely.

The headline should read long risk.

Long risk worked very well as both U.S. and global economies outperformed what the

expectations were more broadly.

But underneath that, in the broader indices, there was actually meaningful dispersion

in sectors, regions, and was actually meaningful dispersion in sectors,

regions, and size. Just some examples are that U.S. large caps outperform small caps to the tune of

12.5%. Europe underperformed the U.S. by one of the largest margins that we've seen in a very

long time. But there were also interesting stories,

not just in the U.S. and Europe, but across the rest of the globe. So you saw places like Argentina

...