Year 2021 has been a better year in comparison with 2020 when Covid-19 has just started. However, it is still a tough year that we have managed to get through. Let's spend a few minutes to recap what we have gone through in 2021 and what we can do better in 2022.
Wrapping up prior to the New Year 2022:
1. Stock Market picked up:
Since Covid-19, ASX200 has dropped to the lowest level as seen in the chart and then came back to the pre-Covid19 level in just a year later and continued to level up toward the end of 2021.
Thanks to the vaccines, the global stock market and Australian Stock Market have gained significantly and lead the best ever performances of many managed funds including superannuations.
2. Inflation is rising in Australia:
Inflation rate has been up significantly from 0.7 in the September 2021 quarter to 2.1 for the whole year until September 2021. According to RBA Governor Philip Lowe, the inflation rate is expected to be higher but still within the target range of 2-3%.
3. Superannuation consideration:
More and more people start wondering if they should switch their superannuation from their current funds to other funds. Many superannuation funds have been doing extremely well and some of others have not performed as well as they should.
What we can do better in 2022:
1. Be realistic
Even though, Covid-19 vaccine has been rolled out globally, the new Omicron variance is still posing a threat to human lives as well as the economy. Investing with caution is advisable in any circumstances. You will find your financial future is more secure when you are taking good care of it.
At any stage of life, keep in mind that diversification is very important to protect your egg nest. Again, you should invest in your knowledge to be capable of applying diversification to your portfolio.
3. Knowledge + Experience = Success
Knowledge and experience in personal finance/stock market will determine how successful you will be in 2022 and many years ahead. Don't underestimate the knowledge or experience, you need both of them to invest successfully.
We keep empowering investors to achieve their goals and dreams by providing private/group coaching sessions to suit their individual needs. We are happy to help you to design and achieve your goals, all you need to do is to contact us anytime you need.
The last words on New Year's Eve are our best wishes to you in New Year 2022. Wishing you a better and more successful year in 2022 personally and professionally.
Disclaimer: The information provided is general information only. It does not take into account your circumstances. It’s important to consider your particular circumstances before deciding what’s right for you. You should not rely solely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss by or damage to the reader or any other person.