Market & Portfolio Update - February 2021
World share markets rose a little further during February, continuing the gains they have seen as confidence in a gradual ‘re-opening’ grows. The vaccine roll-out was one of the contributing factors. At the end of February, around 3% of the world’s population has received at least one dose of a Covid-19 vaccine. Israel is leading the way with 92% of their population inoculated and the initial results are promising.
The Australian share market was one of the better performing markets due to it being made up of more of the ‘cyclical’ style sectors such as banks and resource companies.
The New Zealand share market lagged global markets by some way during February. This was mainly a result of ‘stock specific’ factors, with Fisher & Paykel Healthcare, a2 Milk and the big electricity generators giving back some of their earlier gains.
As highlighted in our article 'Are interest rates heading back up to ‘normal’?', the rise in economic confidence also increased (long run) expectations for interest rates from very low levels. This saw fixed interest investments give back some of their previous revaluation gains, although was also a sign of the more positive global outlook and reaffirms the value of diversifying across different types of investments.
The NZ share market had its first major IPO in some time, with My Food Bag listing in early March (although trading lower after listing). Although the company has become a household name, Booster did not buy shares in the IPO, viewing the price being asked as relatively expensive.
Do You Have a Toxic Relationship with the Phrase “Treat Yourself”?
The phrase “treat yourself” has become a modern mantra. It’s a great way to celebrate a milestone, reward a job well done, or break free from your everyday routine. However, when it comes to our bank accounts, treating yourself can sometimes cause more harm than good.
One small indulgence leads to another, and before you know it, the lines between self-care and overspending blur. You might walk away from the register with a bag in hand but a sinking feeling in your stomach. Sound familiar?
Scroogenomics at Christmas: Finding Joy Beyond ‘The Extravagance’
Gazing through the dimly lit windows of his modest office, Ebenezer Scrooge pondered the modern-day Christmas, “Ah, Christmas – each December, a tide of frivolity sweeps the world, with consumers collectively parting with an estimated $1 trillion globally on holiday spending.”
Reflecting on this, the Scroogenomist wonders, “What if Christmas were not marked by gaudy extravagance, but by acts of kindness? A season where gifts are not measured by their price tags, but by the care and thoughtfulness behind them. A handmade scarf, a heartfelt letter, or simply the gift of time – all these carry more value than gold. How uplifting it would be if people prioritized what truly matters: love, compassion, and the joy of giving.”