Market & Portfolio Update – August 2019
Market & Portfolio Update – August 2019
After good gains so far this year, diversified portfolios produced a relatively flat return for August, but looking below the surface there was a bit more going on. Global share markets had a choppy month, finishing around 2% lower in August. However, the recent volatility was offset by a 5% fall in the NZ dollar, which lifted the value of overseas investments.
Fixed interest and listed property investments also performed well as interest rates fell around the world. Property companies, particularly in New Zealand, have been among the top performers over the past year. They are in somewhat of a sweet-spot with interest rates falling while economic growth remaining solid.
Combining all this together is a great illustration of the benefit in holding a diversified mix of investments. Most multi-sector portfolio posted positive returns for the month, with the more defensive portfolios leading the way having a larger portion of the overall portfolio in fixed interest holdings.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice.
When to invest is a big question facing many budding and experienced investors. The answer seems difficult and has caused a fair few headaches, but here is an example of when to invest that gives a clear answer.
March saw the Coronavirus have a more tangible effect at home, with the move to lockdown in New Zealand taking it from a global event to something with a very clear impact on our day-to-day lives. Meanwhile, share markets around the world continued to be volatile, with the US S&P 500 index staging a dramatic partial 18% recovery in three days towards the end of the month.