As we wind down and conclude the year, December officially marked my 3 months at Morningstar. Much like the financial markets, the year developed into a personal story of resilience and volatility which offered new lessons about considering risk and showing patience. Like many investors, I learnt how easily momentum can shift and the value of staying grounded amid the unpredictable. 

In the spirit of reflection, this month I focused on the year in markets starting with reporting on Morningstar’s downgrade for prominent ASX tech name Megaport. The company bounced back early this year after a slump in 2023 however ended the year on a less impressive note. It was a tough year for investors with the SaaS player’s renewed guidance failing to impress. The stock is down 16% however remains undervalued according to our fair value estimate. 

This year was filled with historic rallies as US equities pushing on despite expensive valuations. The local market captured some of this with tech, financials and real estate rode waves on the interest rate environment. I looked back at the 3 biggest winners and 3 biggest losers of the ASX 100 and what Morningstar sees for their future. 

2024 was a reasonable year for the Australian market with the ASX 200 up 8%. Most sectors ended in the green with Technology leading the pack (53%) and Energy tumbling 20%. I explored the ASX sectors that moved the market this year in Best and worst performing sectors and the respective companies that currently screen as cheap in each.

I covered an embattled mining freight operator amid a tough few years for coal. As coal demand from the developed world declines, investors have been shunning coal adjacent providers however Morningstar believes there is still significant demand found in emerging markets. 

Intuitively the next step after reflection is looking forward. I kicked off a new series ‘Investing Megatrends for 2025 and beyond’ where I explore thematic investing. The world is undergoing a demographic shift as modern medicine, improved living conditions and declining fertility rates have led to an expansion in the ageing population. This month I explored this megatrend and how investors can gain exposure to companies who may service this trend. 

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