Financial Markets Update: December

Piers Bolger
Chief Investment Officer
December was a lacklustre month for financial markets as rising bond yields impacted the performance of on the market, particularly interest rate sensitive sectors such as bonds and REITs. Equities also delivered mixed results with the Australian equity market lower, while global SMID caps were also sold off. EM equities were the better performer, assisted by the weakness in the A$. However, despite a weaker December month & quarter, 2024 was a solid period for all major asset classes. While equities led the way, after several challenging years, moderating inflation along side lower global cash rates also assisted in driving REITs and bond markets higher. As we head into 2025, we are mindful that the rise in equity markets has resulted in valuations becoming more stretched across some market segments. Although, we believe that the reasonable outlook for corporate earnings supported by further declines in global cash rates and a reasonable growth outlook can support stronger markets into 2025.

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This post and any supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement and/or Target Market Determination before making any decision to purchase that financial product. The material in this post is correct and complete as of the date it was posted. Infinity is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this post.

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