Current Market Environment
28 January 2025
The Current Market Environment, which is measured using the past 6 months price performance, still shows inflation and geopolitical uncertainty with gold’s 15.4% return. The stock market is following closely behind with a 11.6% return. The stock market measures growth and also can reflect higher prices due to inflation. Short term government bonds, or T-bills, returned 2.4%. Long term government bonds still show a negative 6 month return of -3.7% due to their value being degraded by the effects of inflation. Bonds have a fixed value and when inflation is apparent investors demand a higher rate of interest to compensate for this. Overall, our economic state is inflationary with economic growth.
Graphic is courtesy of http://stockcharts.com
Disclaimer-All information shared in my posts is my personal viewpoint and shared for informational purposes only. This is not to be construed as investment advice. You alone know what is best for yourself and can make your own decisions accordingly.