Tupicoffs’ Client Updates
Financial Planning for us means providing our clients with ongoing relevant updates about the financial climate. We keep up to date with all changes that may effect our clients so they never have to worry about their money.
“Our role is to ensure our clients financial opportunities are explored and any pitfalls are avoided. Part of our service as Independent Financial Advisers is to provide our clients with peace of mind. We know life isn't all about money, but we also know how important financial security is to enjoying other aspects of life.” - Neil Kendall OAM
Investment Update from Neil Kendall - Managing Director of Tupicoffs, The Independent Financial Planners
2023 ended well for investments with an almost 12.5% increase in Australian shares and an over 20% increase in US shares over 2023. We are now out of the first quarter of 2024 and have seen very strong investment performance. US shares are up 10% for the quarter, while the Australian markets have seen a 4% increase.
Reserve Banks worldwide have committed to lowering inflation after about 18 months of very high inflation. They achieved this through a consistent rise in interest rates internationally. Fortunately, the markets have responded well to the rising rates, and we are currently seeing a worldwide decrease in inflation.
The future movements of interest rates are unclear; some parts of the US Reserve Bank have indicated we may see as many as 3 rate cuts this year, while others have said there will be none. While the timing of the rate cuts is uncertain, interest rates have stabilised, and there is a consensus that we will start to see movement at the end of 2024 and into 2025.
Companies have also lowered costs but kept a high level of profitability. We think at this stage that there may be mild signs of recession, and the economy may begin to slow over the rest of 2024.
Overall, these are good outcomes for investors, and we expect this good performance to continue throughout 2024. We are unlikely to see the same level of investment rises as in 2023 but we do still expect a strong and profitable 2024
