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Download the full issueLocally, inflation has fallen significantly from its December 22 peak, however, the proverbial genie is proving difficult to put back in the bottle. The monthly CPI indicator has risen to 4.0% from 3.4% in December 23.
Over the past 12-months we have noted to clients about the potential for inflation to remain elevated and have been avid supporters of the higher-for-longer rhetoric. Recent data has supported this view.
Globally, multi-national tech companies, leveraging new Artificial Intelligence technologies, have pushed US indices to near all-time highs – largely ignoring elevated yields on treasury bonds. According to Fortune magazine, Nvidia alone has accounted for more than a third of the S&P500’s gains this year. Nvidia now accounts for more than 7% of the index.
Geopolitical conflicts remain a significant concern for global economies. The Russia/Ukraine war continues, whilst the Israel/Palestine conflict is now only months away from the 2-year mark. Neither indicating progress towards a peaceful resolution.
Right on cue, global elections have entered the fold. Over the next 12-months, more than two dozen countries, home to almost half of the world’s population, will undertake national elections. We expect this to be a prominent feature of future global stability (at least in the short-term).
Despite the uncertainty and threats facing global economies we remain cautiously optimistic. If the past 3-years has taught us anything, it’s that consumers, markets, and global economies are extraordinarily resilient.
We will continue to focus on asset allocation weightings to proactively manage downside risks and take advantage of prospective investment opportunities.
Returns for the 2024 Financial Year
- All Ordinaries: 8,013, up 612 points or 8.27%
- Listed Property Accumulation Index: 72,467, up 13,580 points or 23.06%
- 90 Day Bank Bills: 4.45%, up 2.21%
- AUD vs US Dollar: 65.17c, down 1.41c or 2.12%
- UK FTSE 100, 8,164 points, up 633 points or 8.41%
- Dow Jones Industrial Avg: 34,369 points, up 4,749 or 13.82%
Guardian Investments Pty Ltd ABN 18 608 506 261 is a Corporate Authorised Representative of Guardian Associates Pty Ltd AFSL 238281. This page reproduces commentary published in July 2024 and is general advice only. It has not been tailored to your objectives, financial situation or needs, and the figures were current at the time of writing. Past performance is not a reliable guide to future returns. Seek personal financial advice before acting on it.