Market & Portfolio Update - March 2019
Market & Portfolio Update - March 2019
Global share markets had another positive month and have had one of the fastest starts to the year since the 1990’s, rising over 10% since the start of January.
More broadly, the global economy’s growth continues to moderate in pace, and this has led to falling long-term interest rates. Nevertheless, there have been some positive noises of a resolution between the United States & China on their trade disputes.
However, it was the NZ share market that stole the show, rising 6% in March, and 12% so far in 2019. Shares in more income-oriented companies (like the electricity generators that make up almost 20% of the market) have received a lot of support from the lower interest rate outlook, with expectations of at least one OCR cut in 2019.
Encouragingly, falling interest rates are usually supportive for companies and consumers alike. Companies that are looking to grow their business can get access to better funding, while falling mortgage rates are likely to provide some support to the slowing NZ housing market.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice. This document is solely for the use of the party to whom it is provided.
A few curious professors decided to run an experiment. The fact that two of them later became Nobel Prize winners… well, that probably has a bit to do with the outcome.
Share markets across the world continued to recover solidly during May, looking ahead to a gradual loosening of restrictions, and have now recovered much of the March sell-off.