A magnifying glass hovering over a city skyline

What’s on the horizon for shares and property in the next 12 months?

There was much talk of a recession and property market crash last year. However, 2024 has truly taken everyone by surprise.

The past 12 months have been an improving story for investors. July to October was a brutal ride down, with global equity markets trading down in unison by close to 10% due to concerns about higher interest rates and higher oil prices.

However, markets have rallied higher since much-touted recessions have not materialised, and the Central Bank rate tightening has finished.

Despite what feels like a bruising twelve months for investors, the ASX 200 has enjoyed a pretty good financial year, up +7.8% or (or +12.1%, including dividends).

With the S&P 500 notching a near 15 per cent gain in the first half of this year, strategists believe an ongoing rebound in company earnings will keep driving the US share market higher.

The six largest companies on the S&P 500 – Amazon, Apple, Alphabet, Meta, Microsoft and Nvidia – are projected to grow earnings by 30 per cent in the second quarter, far higher than projections for the remaining 494 stocks of 5 per cent profit growth.

Nvidia’s stock market value hit $3 trillion for the first time in June as the chipmaker benefited from a race between Wall Street’s heavyweights to dominate AI technology.

Bitcoin’s price again reached an all-time high in March 2024 and doubled in value for the financial year. ASX’s launched its first bitcoin EFT last month

Home values climbed by 8 per cent nationwide over the past financial year to hit record highs.

Amid an ongoing supply shortage, strong demand fuelled the sustained price increase and shielded the housing market from the impact of higher interest rates, a weaker economy and poor sentiment.

Sydney also hit a record high—surpassing its pre-pandemic peak—after home values increased to $1.107m.

The persistent growth comes despite various downside risks, including high rates, cost-of-living pressures, affordability challenges and tight credit policy.

The consumer price index increased to its highest level in 2024 to 4%, indicating the Reserve Bank is unlikely to cut interest rates soon and could rise again.

This week, the US Supreme Court ruled that Donald Trump has broad immunity from criminal prosecution for actions taken in office as president, dealing a significant blow to his prosecution on charges of election interference.

The decision means that if Trump wins the election, he could appoint an attorney general who would seek to dismiss the case against him and any other federal prosecutions he faces.

The point of the story is to stick to your investment plan.

The sooner you start planning, the more options you have.

For those thinking of retirement and want to better understand how to create an income for life. Click on the video to watch this webinar replay.

Last week on LinkedIn, I asked……If you were given $1M to invest for retirement, which would you pick?

What’s next for the Property Market?

Labor’s overhaul of stage 3 tax cuts, set to take effect from July 1, will add further fuel to the fire by increasing the amount home seekers could spend on property.

Tax cuts would boost borrowing power at a margin equivalent to two interest rate cuts.

Something that resonated with me

Whatever age you are today, your future self would love to be where you are today.

Most people do not consider 65 a young age….. but when you’re 75, you’d love to rewind to 65 and regain those years.

Today is a great opportunity, no matter what your age. Looking back a few years, today will seem like the time when you were young and full of potential or the moment when you could have started early or the turning point when you made a choice that benefited your future.

The moment in front of you right now is a good one. Make the most of it!

Retirement & Superannuation Experts

Mike Sikar

Founder & Principal Advisor

I’ve been a leader and innovator of the financial services industry for almost two decades, as a stockbroker from 1997 – 2007 and as a financial advisor from 2008.

Managing money comes down to basic psychology-understand how it works, know what you want it for and consistently apply the key principles to get the most out of it.

Founder and Principal Financial Advisor

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