Market & Portfolio Update - April 2025
Global markets began April with some volatility as investors digested “Liberation Day” tariffs announced by the Trump administration. In particular, investors feared a tariff war would lead to higher inflation, lower global growth, and the potential erosion of the historic ‘safe haven’ status enjoyed by the US dollar. However, the markets recovered a significant portion of these losses following the announcement that all reciprocal tariffs except China’s would be delayed for 90 days. Due to the volatility, global markets were down -3.8% for the month.
The NZ share market proved to be less volatile than global markets but still ended April down -3.0% nonetheless, as the ever-evolving global political environment spooked investors.
Meanwhile in New Zealand, the Reserve Bank cut the Official Cash Rate another 0.25% to 3.50%. As this was widely expected, the announcement was a non-event for markets.
New Zealand and global Fixed Interest markets were up +1.1% and +0.8%, respectively, as investors retreated to safe haven assets during the tariff volatility.
Lifetime Book Club: Four Thousand Weeks by Oliver Burkeman
In a world obsessed with productivity hacks, endless to-do lists and squeezing more out of every day, Burkeman offers something radical: acceptance. Not of defeat – but of reality. Because when you really look at it, four thousand weeks (roughly 80 years) is all we’ve got. And no app or bullet journal is going to give us more.
Market & Portfolio Update - May 2025
The global share market (represented by the MSCI World Gross Index) was up +5.3% in NZ dollar terms during May, as consumer sentiment improved and trade tensions eased. Progress in US trade negotiations with the European Union and a temporary delay to planned tariff hikes reduced fears of a global recession and fuelled broad-based gains.