Santa Has Bounced!
28 December 2023
To all Financial Friends
A quick look at the past year. The commentary looking ahead will arrive mid-January with some important considerations - please watch for this.
Santa it seems, enjoyed his Christmas and is now bouncing happily along into the New Year! Financial Friends should have an investors smile, seeing that most, if not all of their holdings will have risen quite nicely in the month to 27th December. The so-called Santa bounce is a phenomenon said to reflect the lifting of the human spirit between Christmas and the New Year!
This year Santa has solid reason to bounce as the foundation behind your investments rising is likely to be the US Federal Reserve hinting at three possible interest rate reductions in the New Year. Now that would be good news, and a stimulus to the global economy. Here in the UK, prompted no doubt by the coming General Election, there are hints of tax cuts coming. Oh, me oh my, what a surprise!
Over the year to date the main holdings of Financial Friends representing 11 assets reflecting different sectors of the market, have shown 6 funds rising strongly (technology 59% and American shares 38%) five carrying minor losses of around 4%. Where holdings were spread evenly across all eleven funds, the years return is a healthy 9.36%. I have always promoted the hope of returns between 8% pa to 12% pa as a reasonable expectation. That is a hope gained from experience and not a guaranteed gift from Santa.
Short term over the month to date (27th Dec) all the main holdings of 11 funds have risen - five funds have risen to between 10.69% - 6.27%. Growth in the remaining funds gave gains of between 5.69% - 2.86%
One Financial Friend invested in future transport - a Black Rock Fund making 7.78% over the month. A very new student should be delighted with her 3-month return of 14.76% investing in US smaller companies. There are a wide range of funds held by Financial Friends whist the consensus is held in the eleven funds used as a basis for gauging performance.
As always please remember this mail is a commentary not unlike commentaries you read in the press. The difference is that you know the author and are, as always invited to talk with him by Zoom or phone - you can book a time and date right here:
www.calendly.com/yourfinancialfriend
Absolutely please have the best of years to come - the next commentary to come should help this to be achieved!
Happy New Year
PLEASE NOTE: A financial or economic commentary like these, are written to explain, interpret or give an opinion on economic events and markets to help readers understand what’s happening and why it matters. Designed to help you make informed decisions of your own by making you aware of opportunities, risks and potential rewards in the market.
