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: Die With Zero by Bill Perkins
“The goal is not to die with the most money, but to live the richest life.”
That is the central idea of Die With Zero. From the start, Perkins makes it clear this is not a book about saving, investing, or retiring early. It is about using money, time, and health to create a meaningful life now, not someday.
The Rise of Ethical Investing
Ethical investment, also known as Socially Responsible or ESG (Environmental, Social, Governance) investment, is about putting your money where your values are. These investments allow you to support companies and industries that aim to make a positive impact, whether that’s reducing carbon emissions, promoting fair treatment of workers, or driving social change.