Australian shares are hitting record highs, boosting investor wealth and superannuation balances, with analysts predicting further growth.
Driven by global factors like easing inflation, lower interest rates, and a pro-business U.S. president, the ASX200 index gained 3% in November and is up 11.1% in 2024, surpassing its historical average return.
The market’s value has grown by over $240 billion this year, reaching $3.06 trillion. While some stocks appear overvalued, experts highlight opportunities in undervalued sectors like mining, which lag behind the banking and tech industries.
Seasonal trends, including the December "Santa rally," and potential interest rate cuts by the Reserve Bank in 2025 are expected to sustain momentum. CommSec predicts the ASX200 could climb to 8600 points in the first half of 2025.
While banking and tech stocks have soared 34% and 56%, respectively, energy and mining have declined. However, optimism remains for resource stocks as China’s economic recovery and U.S. policy shifts could provide a boost.
Strong performers include Mesoblast (up 471%), Zip Co (438%), and Life360 (235%), with gains fueled by U.S. policy expectations. Despite challenges, sectors like retail, fast food, and gold mining have also delivered robust returns.