What’s happened in the world of money over the past month?
Catch up with the world of finance in Owen’s December 2023 market update, covering major market moves, bonds & the power of offset accounts.
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Major asset classes 30 days (YTD)
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- NDQ: +4% (+46%) – 22x
- IVV: +4% (+19%) – 16x
- ASX 200: +1.8% (+2.6%) – 16x
- FTSE: +1% (-0.5%)
- Hang Heng: -7% (-17%) – sluggish economic growth, property sector. Very different economy.
- IAF: 1.5% (+0.3%)
- VBND: 2.5% (+0.5%)
- CASH (ING): 5.3% for 1Y (up from 5% last month)
- NUGG: +3% (15.6%)
- BTC USD: 20% (156%)
- AUD: +1.6% (-3%) – a reversal
Australian Economy
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- Interest rates – up 0.25% on November 8th
- “Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago. The latest reading on CPI inflation indicates that while goods price inflation has eased further, the prices of many services are continuing to rise briskly. While the central forecast is for CPI inflation to continue to decline, progress looks to be slower than earlier expected. CPI inflation is now expected to be around 3½ per cent by the end of 2024 and at the top of the target range of 2 to 3 per cent by the end of 2025. The Board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable timeframe.”
- Household savings ratio
- Nearly 25% during Covid, between 1959 and 2023, averaged 9.4%, now 3.2%
- Interest rates – up 0.25% on November 8th
- Basically, the board thinks inflation is not fully under control, but we also know that older Australians are doing better than before.
