Navigating A Very Narrow Runway – GPS Wealth Monthly Market Update

Virtuous Wealth presents the November GPS Wealth Monthly Market Update. These updates from our licensee group assist us with strategies and give context to investment decisions.

In the December update:

Both share and bond market prices continued to rise in the December quarter, capping a solid year for investment markets. The moves were driven by the combination of evidence that inflation was easing, comments by the Chairman of the US Central Bank that interest rates were likely to fall in 2024 and economic data that remained fundamentally robust. This resulted in a near consensus view that a soft landing is in place, with rate cuts in the US now expected in March, and Australia is likely to follow with interest rate reductions in the second half of the year. This seems optimistic, as discussed below. The Australian 10-year bond yield decreased from 4.4% to 4% during the month on comments by the Reserve Bank of Australia that higher interest rates were working to slow the economy. That’s just part of the story.

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