As we approach the end of the year, we’d like to take this opportunity to reflect on the past 12 months and share our final update of 2024.
Despite global markets facing challenges, including rising interest rates, geopolitical tensions, and inflationary pressures, investment portfolios on the whole have seen positive returns. We are pleased to have delivered great news to many of our clients.
The company itself has seen changes as well, with farewells, fresh faces, new initiatives, and steady growth. All of this is building up to an exciting 2025.
Before you get too busy with your last-minute shopping, Christmas BBQs, and road trips, we would like to leave you with a few final thoughts about your finances and investments.
Plan a 2025 budget: Create a detailed budget outlining income, expenses, and savings to manage your finances effectively. Regularly review and adjust your budget to adapt to changing circumstances.
Set clear financial goals: Establish short-, medium-, and long-term financial goals to guide your decision-making and resource allocation. Break down large goals into smaller, achievable steps to stay motivated.
Automate savings: Make saving a habit by setting up automatic transfers to your savings or investment accounts. Consider using a budgeting app to track your spending and savings progress.
Seek financial advice: Consult your financial adviser (Trilogy) to gain expert guidance and personalised strategies. A qualified financial adviser can help you develop a financial plan/strategy tailored to your specific needs.
Market Update
Global markets have displayed remarkable resilience in 2024, as would have been reflected in many of your portfolios, with the S&P 500 leading the charge. This US benchmark index has surged nearly 30%, marking one of its strongest performances in recent history. However, it’s important to temper your expectations after such periods of growth. Exceptional years are relatively rare, with the S&P 500 exceeding this year's performance only 17 times in the past 74 years.
European markets, while positive overall, have underperformed global peers. The pan-European Stoxx 600 index has remained relatively flat for the year, in stark contrast to the strong gains seen in the US and Chinese markets. This underperformance can be attributed to ongoing economic concerns and political instability in the region.
Emerging markets have also shown resilience and growth potential. The MSCI Emerging Markets Index has delivered robust returns, driven largely by a surge in Chinese equities. China's stock market rallied over 20% in the third quarter alone, fueled by coordinated stimulus measures from the Chinese government.
Closer to home, the New Zealand market has also demonstrated impressive growth. The S&P/NZX 50 Index has posted a 14.2% annual increase as of November 2024, reflecting the strength of the local economy and investor confidence.
Local interest rates have also seen a significant reduction over the past year. The Reserve Bank of New Zealand (RBNZ) has cut the Official Cash Rate (OCR) to 4.25%, down from 5.5% earlier in the year. The Reserve Bank’s actions are in response to declining inflation, which reached 2.2% in the third quarter of 2024, and concerns about economic conditions. Financial markets are pricing in further cuts, with expectations of the OCR reaching around 3.25%-3.5% by the end of 2025. These lower interest rates are expected to support the housing market, with steady gains in house prices anticipated, and provide relief for mortgage holders in the coming year.
Office Shutdown 2024
Trilogy’s last day of business for the year will be Friday, 20 December 2024, and we will be back on Monday, 6 January 2025.
For any urgent enquiries during this period, please contact us at info@trilogyfs.co.nz. We will respond as soon as possible.
Planning any transactions before the holidays? Let us know by December 17th so we can get them sorted.
Thanks for sticking with us in 2024! We appreciate your trust and support. We would also like to wish you and your family a Merry Festive Season and look forward to continuing to work with you, refreshed and recharged, in 2025.
Kind regards,
Trilogy Team
P.S. Below is a refreshing cocktail recipe to help you chill out this summer.
Tropical Summer Breeze 🍹
A light and fruity cocktail perfect for warm days.
Ingredients (Serves 1):
45 ml white rum (or vodka for a milder option)
90 ml pineapple juice
30 ml orange juice
15 ml coconut cream (optional for a creamy twist)
Splash of soda water
Ice cubes
Garnish:
Fresh pineapple wedge or slice of orange
Mint sprig
ความคิดเห็น