Greg Boland, international analyst, talked with Proactive about what typically happens in global markets during the final months of the year, and how those movements tend to influence the Australian Securities Exchange (ASX).
He explained that over the past 15 years, markets in the US and Europe have often seen gains in the fourth quarter, with December historically being one of the strongest months. “Most of the time the market tends to go higher in the fourth quarter,” Boland noted, though he also highlighted exceptions like 2022 and 2019.
Boland discussed how these global patterns generally translate to local conditions. He pointed out that the ASX often mirrors global market moves, with interest rate settings and global commodity demand — particularly from China — playing significant roles in shaping local performance. He also noted the importance of earnings season in the US and its ripple effects on sentiment in Australia.
Looking ahead, Boland advised small to mid-cap ASX companies to remain cautious with debt, focus on cash flow, diversify geographically, and be operationally flexible. He said, “Be selective if you’re raising capital,” adding that the capital environment could tighten if markets soften.
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