However, far from being unusual, a yearly performance of 20% or higher has occurred one-third of the time according to Booster.
We saw plenty of news about trade uncertainty, geopolitical concerns, and slowing economic growth in 2019. Despite that, the global economy still looks likely to have expanded by US$3 trillion to an estimated US$88 trillion this year. Growth in the world economy continues to be supported by trade, consumer spending and company earnings.
The United States and China seem to be making progress on their trade disputes. November saw positive results from global share markets after the last 18 months. Additionally, business confidence lifted in both countries, suggesting improvement in the worldwide economy. Longer-term interest rates around the world are impacted by US rate.
Following last year’s modest decline, this year’s strong gains are a good illustration of the value in ‘staying the course’ during the occasional periods of shorter-term weakness that come with long-term investing. While performance in 2020 may be above or below the long-term averages, the broad economy is likely to continue to support markets growing over the long term.
The Christmas break is always a good time to reflect and an opportunity to think about your long-term financial objectives. The investment advice team at Imak can help you with this. Having a plan written down will leave you assured that you are on track to meet your goals.