It’s Christmas time and it is no doubt a busy time of year as we wrap up work, prepare for the holidays and look forward to spending time with family.
In amongst all the busyness, I also hope you find time to relax and take stock of the year that has been, and prepare for the year ahead.
How has the last 12 months been for you?
As you take time to reflect on the year that’s been, I hope you find moments that have brought you joy and a feeling of gratefulness.
Looking ahead, I want you to ask yourself: How do you want your next 12 months to look?
From an investing viewpoint some of the key figures over the last twelve months have been:
- ASX 200 up around 1.7%
- S&P 500 up close to 17%
- Australian cash rate 4.35% up from 3.1% at Christmas last year
- Inflation 5.4% for September quarter compared to 7.8% in the December 2022 quarter
As I look at the last 12 months I ask, what will these figures look like at Christmas 2024? Will we be in or through a recession? If so, what effect will that have?
There are lots of question. Equally, there are as many opinions. Yet, we will not know the answers until we get there.
With inflation heading down, the interest rate hikes may be over. Depending on how sticky inflation is there may be another rate rise to come early in 2024. It appears the majority of economists are predicting the rate to drop from mid-2024.
Yet, the truth is we don’t have much control over this data or what happens.
Considering that, what can you do then?
One thing is certain, you can control your behaviours and actions. If you have a plan you can stick to it. That means even through short-term pains that may cause you to lose faith.
Do you have a financial plan you are sticking to? If you do not, now is a time to put one in place. With a new year around the corner, the timing is perfect.
As we near the end of 2023, I want to thank the people I have had the pleasure of working with this year and wish you a very relaxing and enjoyable Christmas. I look forward to another year ahead.
About the author
Please note, this blog is not intended as financial advice and the content may not be suitable to your circumstances. Please always reach out if you’d like to discuss your current situation and what might be best for you.