Back

Winners and losers of the 2021 rollercoaster

13th December, 2021

At the start of the year we hoped 2021 would be better, instead it’s been, well, interesting. There have certainly been some ups and downs, especially in the world of finance, so who were the winners and losers and what had us scratching our heads?

House prices

Over the course of the pandemic, house prices, on average, increased a whopping 20-25%, contrary to most predictions at the start of the pandemic which prophesied dramatic price drops.  Just goes to show how market movements are hard to predict even for the experts.  What will happen next year?  This year proves that no one really knows.

*Capital city weighted average. Source: CoreLogic, ANZ Research

The Buy Now Pay Later (BNPL) explosion

Labelled by some as “the future of millennial finance”, BNPL schemes have exploded during the pandemic. There have never been more ways to spend your money or ways to pay for purchases interest-free. There are now more than a dozen BNPL companies operating in Australia. Even the banks are jumping on the bandwagon and according to the Reserve Bank, in the 2019/2020 financial year, BNPL providers processed more than $9 billion in payments.

If used wisely it can be an easy way to spread out payments on a purchase. Used poorly, BNPL can result in missed payment fees, the inability to meet other expenses and a black mark on your credit file. So be careful not to let the euphoria of instant gratification turn into an emotional crash of debt regret.

While the abundance of new players in the market has been welcomed by users (especially the schemes that don’t charge fees), the story for investors has not been so rosy. Shares in BNPL companies have plummeted by an average of 80% recently, with some dropping up to 96% in value.  Ouch!

Cryptocurrency

For anyone taking a punt on crypto, it really has been a rollercoaster ride. The value of cryptocurrencies can move more in a day than some shares move in a decade, up and down. For example in November alone, the price of Bitcoin was as low as $53,000 and as high as $68,000. So these bets are definitely not for the faint-hearted or risk-averse investors.

World events

From serious milestones to the weird and wonderful, here are some interesting news stories from this year:

  • More than 3.3 billion people are now fully vaccinated against COVID-19
  • The United Nations declared 2021 the International Year of Fruits and Vegetables
  • The 2020 Olympics were held in Tokyo … in 2021
  • Civilian sightseers went to space, including (the original) Captain Kirk
  • Elon Musk became the wealthiest person in the world
  • Scientists finally got to the bottom of why wombats poop in cubes.
  • US scientists calculated that Santa would have to visit 822 homes a second to deliver all the world’s presents on Christmas Eve, travelling at 650 miles a second.

Sometimes you just need a laugh.


How do you rate this?
Any other feedback?
No personal information is collected and responses are anonymous.

Share this article:

CHECK OUT MORE HELPFUL ARTICLES

VIEW ALL ARTICLES

Tips for tough times

How to financially navigate or make the most of these...
Read More

Afterpay’s $39 billion payday

Recently, it was reported that Afterpay, one of Australia’s largest buy-now-pay-later (BNPL) providers has sold for $39 billion. Not bad for a company that launched less than seven years ago.
Read More

Two actions to take before choosing a Financial Adviser

Access resources about the structure of the financial advice industry and how it interacts with its clients.
Read More

lamp

LOOKING FOR FINANCIAL ADVICE?

Find a financial adviser who will act in your best interests.

FIND A FINANCIAL ADVISER

SIGN UP FOR OUR MONTHLY NEWSLETTER

Want to stay up to date with personal financial issues affecting ADF members and their families? Sign up for our monthly e-newsletter with topical articles by a range of expert contributors.

2LT
AB
AC/W
ACM
ADM
AIRCDRE
AIRMSHL
ASLT
AVM
BRIG
CAPT
CDRE
CMDR
COL
CPL
CPL/BDR
CPO
DR
FLGOFF
FLTLT
FSGT
GEN
GPCAPT
LAC/W
LCDR
LCPL/LBDR
LEUT
LS
LT
LTCOL
LTGEN
MAJ
MAJGEN
MIDN
MR
MRS
MS
NCOCDT
OCDT
OFFCDT
PLTOFF
PO
PTE
RADM
RSM-A
SBLT
SQNLDR
SSGT
VADM
WGCDR
WO
WO-N
WO1
WO2
WOFF
WOFF-AF
Other

NEED HELP?

WE ARE HERE TO ASSIST

GET IN TOUCH