Market & Portfolio Update - February 2022
Global share markets fell modestly in February (3%), with uncertainty regarding Ukraine tensions weighing on the market in the lead up to the invasion. While New Zealand and Australian share markets posted positive returns, being further from the conflict and experiencing the latest financial reporting season. Overall, the financial results have been positive, contributing to the 0.7% and 2% returns for the New Zealand and Australian sharemarkets.
The conflict has put upward pressure on oil prices, with the international benchmark Brent Crude rising above USD 100 for the first time since 2014. Russia is a major oil exporter, supplying around 25% of Europe’s oil. Oil and gas have not been included in sanctions to date, and it is still in the interests of Russia’s economy to continue exporting to Europe. However, as we know, this situation is dynamic, and oil prices could rise further if caught up in the conflict.
In New Zealand, the Reserve Bank hiked the Official Cash Rate 0.25% as expected – taking the rate to 1%. The Reserve Bank’s updated forecasts now show the OCR reaching 2.6% by the middle of next year. However, this is subject to how the Ukraine invasion develops.
Finding Your Financial Ikigai: The Japanese Art of a Balanced & Purposeful Life
In a world that often measures success in financial terms, the Japanese concept of Ikigai offers a refreshing perspective. Transcending the boundaries of culture and geography, this philosophy loosely translates as "a reason for being". Ikigai is a convergence of what you love, what you're good at, what the world needs, and what you can be paid for. It's an approach that represents a broader view of prosperity, encompassing joy, purpose, and contentment. As financial advisers, we find this particularly compelling. This article delves deeper into how Ikigai can not only enrich your life but also inform your financial decisions for a more fulfilling journey.
Lifetime Book Club: Intentional by Chris Bailey
In a world full of distractions, half-finished to-do lists, and “I’ll get to that later” energy, this book feels like a helpful nudge back to what really matters.
It’s not about doing more for the sake of it. It’s about doing the right things, with more purpose, more clarity, and a little less chaos.