In November, a bond yield reversal boosted both defensive and growth assets, with growth assets returning 4.9%, Australian equities up 5.0%, and defensive assets outperforming amid eased US inflation and Fed rate cut speculation.
In October, global shares performed poorly and the US S&P 500 and Australian shares both declined. The Utilities sector was the only positive performer, while IT was the worst-performing sector. Concerns about sustained US inflation contributed to the global downturn.
Term deposits are a common savings strategy, especially with rising interest rates. However, there are pros and cons to consider based on your financial goals and needs, including the level of flexibility you require.
The RBA has been lifting interest rates at a rapid pace, quickly undoing its pandemic-era cuts and pushing rates to their highest levels in more than ten years. But as painful as the rate hikes are, it is possible to make out some silver linings.