Global stock markets leaped up in the fourth quarter of 2023 as inflation ebbed, and central bankers indicated interest rates may start to decline in early to mid 2024. Some global stock markets, including the important American S&P 500, are near all-time highs.
As always the near-term direction of global stock markets are uncertain. We may see inflation continue to weaken, providing room for interest rates to decline, and therefore achieve the proverbial “soft landing” for the economy that economists had hoped for. Or, we could see governments continue to deficit spend, existing wars spread, and a new one start in Asia, causing supply chains to choke, and inflation and interest rates to tick up yet again.
I really don’t know, which is why steadily investing over time, and remaining focused on increasing monthly dividends while staying invested long-term, is the best route for most young investors.
When the stock markets gyrate, focus on a long-term plan and growing dividend income over time, which will eventually support a portfolios’ higher capital value. TheAnswerIs.ca Model Portfolio is designed to collect dividends every single month, whether the market increases OR decreases. The monthly drip of income helps an investor stay focused on the long-term.