Let the past bring some comfort

Well here’s hoping you have made some money on your investments and super over the last year. There seems to be an almost tangible sigh of relief being expressed. Our houses are worth 10%+ more and your shares should be bubbling, so does it keep going you ask?

Well nothing goes up forever and a nice run-up like this is very often followed by some sort of pull-back. So that’s the most likely short term effect. There will be some bouncing around now in prices. That will be a tussle between the world getting nervous about whatever event is next (the USA not printing as much money is high on the list) and a big flow of money out of term deposits looking for an investment paying a better return. Any drop in prices will be met with a wall of cash.

Long term, the GFC catastrophe is recently behind us, so it would be historically unique to fall into another one. That’s probably the most important realisation when faced with a new investment opportunity next year. Good luck!

P.S. After last month predicting that the banks were about to send us an offer to increase our credit card limit, you wouldn’t believe what came the following week from NAB. Wow that was quick!!

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