Simmering beneath the surface of a robust global economy and equity markets at record levels is the mounting threat of a financial meltdown, amid unprecedented levels of debt, higher inflation and the return of Donald Trump to the White House, analysts warn.

Sharemarkets from America to Europe, Japan, and Australia reset records in 2024. The S&P 500 Index returned more than 20 per cent for the second year in a row. In an ominous sign for investors, the US benchmark has done this just five times in its history and this has often been followed by years of losses.