In this guide
For the second year running, investors had a surprisingly good year in 2024 thanks to moderating inflation, economic growth holding its head above water, falling interest rates (just not in Australia) and buoyant share markets.
Despite escalating war in the Middle East and Ukraine, a cost-of-living crisis and fears of a market correction, shares streaked ahead. And as the table below shows, most major asset classes produced positive returns.
The shooting star award goes to cryptocurrency. Bitcoin went through the roof, up 123% on the promise of support from US President elect, Donald Trump. Back in the real world, Australia was a casualty of the collapse in the iron ore price due to China’s sluggish economic growth.
Against this backdrop, super funds had another excellent year. Ratings group Chant West estimates the median Growth fund gained close to 11% in calendar 2024, topping the strong 9% return in 2023 and more than making up for the 4% decline in 2022. It’s an impressive result and, given the wall of worries the markets scaled over the course of the year, further vindication for the benefits of holding your nerve and focusing on long-term financial objectives.
What could possibly go wrong? More on that later.
Calendar year returns to 31 December (% change)
| 2024 | 2023 | |
| Shares | ||
| MSCI World Index (excl. Australia) | +17.8% | +16.2% |
| S&P 500 | +24.2% | +24.7% |
| ASX 200 | +7.5% | +7.84% |
| Interest rates/Bond yields | ||
| Cash rate | 4.35% | 4.35% |
| Australian 10-year bond yield | +0.44% | -0.08% |
| US 10-year bond yield | +0.63% | +0.04% |
| Currency | ||
| $A vs $US | -9.1% | 0.0% |
| Commodities | ||
| Iron Ore | -23.0% | +23.4% |
| Oil (Brent Crude) | -2.9% | -10.2% |
| Gold | +27.4.3% | +13.1% |
| Australian residential property | ||
| CoreLogic Home Value Index | +4.9% | +8.1% |
Sources: Trading Economics, Reserve Bank of Australia, CoreLogic
