Financial final sprint! Interest, Bitcoin, Gold & the ultimate checklist

Are you already in the Advent mood? With the snow just in time for the beginning of December, the Christmas spirit really comes to life. And for those of you who are more on the grumpy Christmas side, the prospect of good times in the mountains can also be a ray of hope. There is still a lot to do in the field of finance shortly before the end of the year and there is currently a lot of movement with the latest developments in the field of interest rates. I have summarized some current points for you here and an end-of-year checklist for December that will ensure you don’t miss anything and can make the start of 2024 a lot easier. Happy Advent and have fun🎄.

In November, the FED, the American central bank, did not adjust interest rates further; for the time being this remains at the limit of 5.25-5.5%. The European Central Bank (ECB) also recently stopped raising interest rates. Whether interest rates will remain at a high level or even decline will become clear in mid-December, when the next interest rate decisions by the FED and the ECB will be taken. The decisive factor for this is the development of inflation, which, for example, has developed positively in the US and at approximately 3.2% is still well above the desired target of 2%, but still well below the level of January 2023 (6, 4%). ) (Statista data). Experts expect interest rate cuts from 2024 onwards. If this development occurs, bonds will benefit from appreciation and long-term return expectations for equities will rise.

Gold is considered a safe haven in uncertain times. Driven by the uncertainties in the conflict in the Middle East, the gold price is constantly rising. As a result of additional likely future interest rate cuts, which fuel speculation about related further economic developments and are generally accompanied by a lower US dollar exchange rate, demand for gold continues to increase. The gold price is rising and reaches an all-time high of US$2,100 per ounce on Monday, December 4.

Bitcoin is also rising steadily, rising to over US$42,000 per Bitcoin on Monday (Coinmarket Cap data). The positive sentiment is mainly fueled by expectations of the approval of Bitcoin-based EFTs in the US, which is expected to take place early this year.

Is the big party now in order, with the prospect of stabilizing inflation, the associated falling interest rates, a potential rebound and positive developments in bonds and equities? Since no one has a magic crystal ball, the current, more positive investor sentiment is based on expectations. This also relates to the ups and downs of the markets, because what really matters when it comes to inflation is what matters. No risk, no return. Waiting until there is a lot of certainty is usually not an advantage, because the party is often over by then. Chasing the market and falling for the gold rush, for example, has never been a good idea, because you might end up buying too expensive. In such dynamic times, it is more than ever worth investing in a boring, disciplined, diversified way, and actually seeing speculation as such for those who like it and only investing amounts that don’t hurt too much if things go differently. Ultimately, the most important thing for success is how much time you have available for your system and how well you can handle the potential roller coaster.

So it remains exciting for the end of the year. This also offers a great opportunity to put you in pole position for 2024. A short checklist can be found here.

No matter how the situation develops, the cold days are ideal for a quick financial clean-up. What do you still have planned for your finances in December 2024 and how do you see the situation? Will 2024 be a more exciting financial year and where do you see opportunities?