Market & Portfolio Update - April 2022
Global share markets continued their choppy start to 2022 during April. For New Zealand-based investors, a fall in the NZ dollar played an important role in helping offset the volatility global share markets experienced. The NZ dollar fell against most major currencies supporting the returns of unhedged overseas assets (assets that are free to move with exchange rates). As a result, ‘unhedged’ overseas investments fell by only 1.8% for NZ based investors.
The latest data shows New Zealand’s annual inflation rate reached 6.9% in March – up from 5.9% in December. The Reserve Bank of New Zealand responded by raising the Official Cash Rate 0.5%. The OCR now sits at 1.5%, and is expected to continue to rise. However, it's important to note that market expectations have already adjusted so that a rise to 3.5% by the end of the year is already baked into asset prices. This means the actual impact from here of future increases at this rate should reflect their not being a ’surprise’ for investment markets.
Finding Your Financial Ikigai: The Japanese Art of a Balanced & Purposeful Life
In a world that often measures success in financial terms, the Japanese concept of Ikigai offers a refreshing perspective. Transcending the boundaries of culture and geography, this philosophy loosely translates as "a reason for being". Ikigai is a convergence of what you love, what you're good at, what the world needs, and what you can be paid for. It's an approach that represents a broader view of prosperity, encompassing joy, purpose, and contentment. As financial advisers, we find this particularly compelling. This article delves deeper into how Ikigai can not only enrich your life but also inform your financial decisions for a more fulfilling journey.
Lifetime Book Club: Intentional by Chris Bailey
In a world full of distractions, half-finished to-do lists, and “I’ll get to that later” energy, this book feels like a helpful nudge back to what really matters.
It’s not about doing more for the sake of it. It’s about doing the right things, with more purpose, more clarity, and a little less chaos.