Blast Off

By Murray Dawes, Saturday, 16 December 2023

There is plenty to think about as we head towards the end of the year and contemplate what may be in store for us in 2024.

Last week I showed you a bunch of property and infrastructure stocks that I thought could see better days ahead.

Those stocks were up an average of 4.25% over the past week after the US Fed’s dovish pivot.

At the end of last month I pointed out that US bonds, S&P 500, copper, and gold had all confirmed monthly buy pivots while the US Dollar had confirmed a monthly sell pivot.

I don’t often see so many markets agreeing with each other in unison, so the strength of the signals was compounded in my view.

I have also been pointing out that when an interest rate cycle peaks, the reversal can be swift — with rates falling faster than most expect.

US 10-year bond yields have dropped over 1% in the past two months with further falls likely as inflation continues to wane.

For now, stocks are loving it and the Santa rally is in full swing.

Small caps have been underperforming large caps by a large margin over the last year, but that may change as interest rates fall and animal spirits return.

So there is plenty to think about as we head towards the end of the year and contemplate what may be in store for us in 2024.

Click on the picture above to watch today’s instalment of Closing Bell and don’t forget to ‘like’ my video on YouTube if you want to fill me with Christmas spirit.

Regards,

Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.