April 2024 Client 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 Australia shares and a greater than 20% increase in US shares over 2023. We are now out of the first quarter of 2024 and have seen very strong performance. US shares are up 10% for the quarter, while the Australian markets have seen a 4% increase.

Reserve Banks worldwide committed to lowering inflation after we saw 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 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 outcomes will be good for investors, and we expect 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.