December 2022 Client Investment Update

from Neil Kendall - Managing Director of Tupicoffs, The Independent Financial Planners

We would like to highlight positive performance in global stock markets, particularly in the US and Australia. Despite the Hong Kong market’s initial decline, signs of recovery are emerging. This suggests a more positive outlook for investors going forwards.

China’s move away from COVID-19 containment measures has had a positive impact on Asian markets.

Inflation and rising interest rates remain key concerns globally and efforts to bring inflation under three percent are underway. However, the impact on the economy and consumer spending is yet to fully unfold and we believe the potential for volatility and uncertainty is quite high in the coming months.

While a recession is forecast, it is expected to be less severe than past recessions due to a starting point of full employment and robust business conditions. Overleveraged businesses and individuals may face challenges, but those with more moderate borrowing profiles are likely to weather the recession better.

The importance of maintaining cash flow during this period of volatility and potential recession cannot be understated. All clients are advised to ensure they have sufficient funds to meet their lifestyle needs and financial obligations.

The office will be closed during the holiday season, but provisions are made for urgent matters. Clients are encouraged to reach out via email for any urgent concerns during this period.

We would like to extend warm wishes for a safe and enjoyable festive season. As always, we will continue to worry about our clients' money and we look forward to working together in 2023.