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This week on Money and Investing, Mitch Olarenshaw and I reviewed the major economic, political, and social events that shaped 2024. From record-breaking markets to global tensions, they share insights into the trends that defined the year and what may come next.
1. Record stock market gains
The S&P 500 rose 27% this year, achieving 51 record closes. Strong corporate earnings and easing inflation supported market growth, providing opportunities for investors.
2. Australia’s budget surplus
Australia recorded a $9.3 billion budget surplus — its second in two years. However, high government spending and slower economic growth may impact future budgets.
3. Shifts in U.S. trade policy
Nearshoring in Mexico gained traction as companies sought shorter supply chains. With a new U.S. administration taking office, changes to tariffs and trade deals are expected.
4. Rising cost of living
Households struggled with rising costs for housing, fuel, and groceries. While the U.S. saw rate cuts, Australia’s interest rates remained high, adding pressure on borrowers.
5. Supermarket price investigations
Woolworths and Coles faced inquiries into price gouging practices. Calls for more competition highlighted concerns about affordability and fairness in the grocery sector.
6. Global conflicts and tensions
The Israel-Palestine conflict and U.S. involvement in intelligence and arms support raised concerns over global stability. Political changes may influence outcomes in the coming year.
7. China’s economic challenges
China experienced high youth unemployment, deflation, and weaker-than-expected stimulus measures. Economic headwinds are likely to persist as global trade evolves.
8. U.S. elections and policy changes
A shift in U.S. leadership sparked debates over economic priorities and international relations. Attention now turns to how the new administration will manage growth and stability.
9. Cryptocurrency recovery
Crypto markets rebounded alongside stocks, drawing renewed interest. Discussions around regulation and long-term investment strategies remain ongoing.
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