Market & Portfolio Update - August 2022
Central bankers from around the world met during August at the annual ‘Jackson Hole Symposium’ in the USA. Central banks, like the Reserve Bank of New Zealand (RBNZ), play an important role in guiding the various economies around the world as they battle inflation, so this event was an opportunity to discuss the challenges they’re facing and reiterate their commitment to getting inflation back under control. This came only one week after the RBNZ updated its own monetary policy, raising the OCR from 2.50% to 3.00%.
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The global share market (represented by the MSCI World Gross Index) returned +1.4% in New Zealand dollar terms, despite many listed software companies facing pressure during the month. Investors are questioning how durable some software companies’ competitive advantages really are, as developments in artificial intelligence (AI) may make it easier to replicate their software. Nonetheless, the broader market tone was more resilient as investors continued to favour industries related to AI infrastructure.
Lifetime Book Club: The Almanack of Naval Ravikant by Eric Jorgenson
In a world that often confuses busyness with success and income with wealth, this book offers a different perspective. One that suggests true wealth is freedom. Freedom over your time. Freedom over your decisions. Freedom to live life on your own terms.