December Monthly Update

The end of the bull market or an opportunity to buy?

For those investors that were hoping for a Christmas rally in equities, the gifts found under the tree this year were disappointing. In fact, in a month which is renowned for its positive performance, the US Dow Jones Index recorded its worst December since 1931 and for the first time ever, 2018 saw December deliver the worst returns of any month during the year. With headlines dominated by trade wars, a US government shut down, Brexit and the Federal Reserve shrinking its balance sheet and hiking interest rates, the Dow Jones Index finished the month down 8.7%, whilst Australian shares recorded their worst December-quarter since 2011. The question now is whether 2019 will prove that the recent volatility was a sign of worse things to come, or rather, if this has been an opportunity to buy …