Investor Newsletter January 2025
May I commence by wishing you and your families a very happy, healthy New Year, which, hopefully will be a safe and prosperous one for us all.
This year commenced with very positive 2024 returns having been achieved for Pension and Private investors. Domestically, we saw an emerging Government formation along with the Banks commencing a reduction round in terms of deposit rates, coupled with a reduction in Property availability, as prices rose by more than double what many estate agents had estimated.
Wildfires in Los Angeles have re-ignited the debate around the richer countries, doing more in terms of Global Warming and challenges facing Ireland in achieving its Greenhouse emission targets by 2030. As far back as our September 2019 Newsletter, we highlighted the ever-important area of Sustainable Investing. We hope more investors take note, as this is directly linked to Environment and Climate change.
Internationally, we saw a ceasefire emerge in Gaza and hopes of something similar evolving between Russia and Ukraine. We pray that other conflict and famine zones around the world resolve their differences and stop the horrendous human hardships that have emerged.
The re-election of Donald Trump as President of the US for a second term has brought positive reactions from the markets to date, but some of his appointees have tapered that optimism. The renewed focus on getting US Multinationals to invest at home, thereby, creating more valued jobs, has added to the EU headwinds where France and Germany continue to struggle economically, and face many challenges, both financially and politically. Canada may have a new leader in Mark Cagney (whose family ties hail from Mayo). Rate cuts, in the order of three to four are expected at ECB levels with two in the US.
Our nearest trading partner has struggled economically, with government bond markets at their highest in 27 years, putting huge pressure on the costs of repaying. Separately, we see the US Treasury 1 year rate at 4.1%, thereby, adding to the new US President’s woes in terms of reducing their trade deficit which stands at a whopping $17 Trillion. Important to note that 33.33% of this debt is due for renewal in 2025 with a further 10% in 2026. Along with that, the dollar could reach parity with the Euro by mid-2025.
This year, we commence our 7th year providing companies, families and individuals with impartial advice on a range of financial areas. We appreciate your Loyalty and Trust with your financial affairs over the years, and the Provest team looks forward to working with you and our new clients in the years ahead.
I hope you enjoy reading our latest newsletter and the various articles we have included in this January edition.
Mark O’Sullivan, Managing Director
