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.
News alert March the 5th 2021: Three large earthquakes occurred off the coast of NZ. Civil Defence alerts buzzed cellphones around New Zealand warning of a possible tsunami on the East Coast. Updates in media and Civil Defence website were made known and Kiwis around the land in at risk areas responded to the threat.
This week the Government announced a suite of new policy with the intent to assist first home buyers into the market. This included tax changes for investors, bright-line extensions and increases to the cap on First Home Loans and First Home Grants.