As I am writing this, I cannot believe my diary confirms that we are only 6 weeks out from Christmas. Where has the year gone?
For investors, especially in the late half of the year, there has been a major shift in expectations surrounding how interest rates will track moving forward. Less than six months ago, the Reserve Bank was of the opinion that interest rates would need to move higher as inflation was still the economy's greatest threat.
We now find ourselves in an environment where Governor Orr is forecasting the Official Cash Rate to drop significantly on the back of;
Inflation coming in below expectations
Immigration softening significantly
Migration (especially with young and educated)
The unemployment rate is rising
Businesses operating in a virtually recessionary environment.
Still, there is an old saying: It is always darkest before the dawn, and this, perhaps, is where we now find ourselves. At Endow, we believe that interest rates will soften over the next 3-6 months, and investors should consider taking advantage of current rates, as they are likely to look attractive as next year unfolds.
Now that the election has been decided and we know the choice Americans have made for the Western world’s new leader, we all share the hope that, regardless of the outcome, this decision will bring renewed energy and a stronger focus on promoting peace and stability worldwide in the coming year.
We understand that this year has felt uncertain and, at times, slower than expected. We want to thank you sincerely for your continued loyalty and trust in Endow through the ups and downs. Your support is what enables us to keep pushing forward, and we’re grateful to have you with us. Here’s to a brighter and more stable year ahead.
Cheers,
Mike Newdick
