Investment Insights – December 2025
We’re pleased to share the final edition of our Investment Insights for 2025. In this update, we look at the key developments shaping the end of the year and what’s ahead for 2026.
This month’s key takeaways:
- Markets and volatility: November was mixed. After a mid-month dip, major share market indices finished near flat. Infrastructure led gains, gold moved higher, and bond yields diverged.
- Pullbacks are normal: November’s dip and recovery reflect a healthy share market cycle. Since 1980, 5% declines have occurred about three times per year. Volatility is the toll we pay to invest.
- Rates and inflation: A 43-day US government shutdown cancelled key data releases, which may lead to surprises in the first quarter of 2026. In Australia, inflation rose to 3.8% and the RBA held rates steady.
- 2026 outlook: Global shares are expected to grow earnings by 14% in 2026. Emerging markets offer strong growth at attractive valuations. Key risks include upside inflation surprises and whether AI investment translates into sustainable profits.
Wishing you and your loved ones a joyful Christmas and restful holiday season. If you need assistance during this period, please contact us by email or mobile phone.
Warm regards,
Mackay Private Wealth
General Advice Warning: Any comments in this communication do not consider your objectives, financial situation or needs. Before acting on any general advice, consider whether it is appropriate for you.