Market Commentary 1 January - 31 March 2023
We are pleased to see solid returns so far in 2023 despite disruptive events both here and overseas.
After a tough 2022, returns have been supported this year by growing expectations that interest rates are close to their peaks. Many central banks have begun slowing the pace of hikes that we have experienced over the last couple of years. While we are yet to see the full impact on economies from the hikes that are already in place, a sense of having the end in sight has supported recent returns on bond and share investments.
Part of our investment approach is to ensure your portfolio is diversified per the Lifetime investment philosophy. This has meant your portfolio has not been significantly affected by the recent cyclone, flooding or the collapse of SVB bank in the US. There is likely to be further water to flow under the bridge over the coming year as the world economy adjusts to today’s interest rates. However, markets are forward looking and stabilising inflation should be positive for equities as certainty returns. Bond investments are now in portfolios at higher rates which will contribute positively going forward also.
Your report includes more background on your portfolio. The key for most clients remains keeping focused on the long-term plan that your portfolio supports and working with your Lifetime Financial Adviser to stay on track.
Please don’t hesitate to contact your Lifetime Financial Adviser if you wish to discuss anything further.