Market & Portfolio Update - April 2021
Global share markets continued their march higher during April, rising 4% in local currency terms. Economic data has brushed off the horrid Covid situation in India and continues to surprise to the upside. Labour markets are rebounding quickly compared to other cycles and business confidence surveys sit comfortably in expansionary mode.
One theme that continues to be front of mind for investors is rising inflation around the world. Covid-19 has disrupted the global supply chain, initially causing things to grind to a halt before quickly needing to ramp back up to levels higher than pre-covid. This “whip” type effect, along with the large-scale stimulus, has resulted in inflation rates rising. We began adjusting our investments for this in the second half of 2020, by adding inflation-linked bonds in both the NZ fixed interest and global fixed interest sectors.
Financial Decision Fatigue: When to Automate and When to Act
We make thousands of decisions every day. What to wear. What to eat. Which email to respond to first. By the end of the day, our ability to make thoughtful, rational choices is often depleted.
This is known as decision fatigue. And it does not stop at small daily choices. It affects financial decisions too.
Is your emotional attachment to money holding you back?
The way you attach value to money is a far more complex process than you might realise. Our brains are clever little engines, attributing different emotional values to the same amount of money, depending on how important it is to us.