Market & Portfolio Update - August 2024
Global share markets witnessed a bout of volatility early in the month, driven predominantly by weaker-than-expected US employment data and the Japanese central bank raising interest rates by 0.25%. Japan’s share market fell -12% in a day as a result, its largest single-day fall since the Black Monday crash of 1987. Global share markets, represented by the MSCI World Index, also shared in the volatility, but to a much lesser degree. The second half of the month saw Global share markets stage a strong comeback as investors digested the release of more favourable economic data; the MSCI World Index ended the month up almost 2% in local currency terms, while Japan’s share market ended the month down only -0.7%.
Back home, while investors largely expected the Reserve Bank of New Zealand (RBNZ) to cut the OCR by 0.25% during the month, the market was surprised by the RBNZ’s consideration of a more significant 0.5% cut. The market welcomed this as an acknowledgment of the RBNZ’s pivot and reaction to the country’s weakening economic conditions.
Within the New Zealand share market, healthcare and property sectors had a particularly strong month. These sectors tend to be more rate-sensitive and reacted positively to the OCR cut. NZ’s largest listed company, Fisher & Paykel, also performed strongly, ending up +10% following a positive trading update citing strong demand across all products and regions.
Staying Cyber Smart
At Lifetime, looking after your financial wellbeing includes helping you stay safe online. Lately, we’ve seen an increase in online scam attempts across the financial sector here in New Zealand, so we thought this was a good time to share a few friendly reminders on how you can stay protected.
Lifetime Book Club: The Behaviour Gap by Carl Richards
Welcome back to the Lifetime Book Club, this month, we’re taking a closer look at the emotional side of investing with The Behaviour Gap by Carl Richards. It’s a smart, simple, and refreshingly honest book about the biggest threat to your financial success - you.