Market & Portfolio Update - February 2024
Markets have started 2024 on the front foot, with global shares up almost 10% in New Zealand dollar terms. The theme of AI integration and its impact on companies continues to play an important role, with technology businesses leading the market.
We also saw an important RBNZ meeting held during the month, with the Reserve Bank holding the Official Cash Rate steady at 5.5%. We gained more clarity on the path to lowering interest rates, with the RBNZ expecting that we may see cuts early in 2025. As a result, we saw banks begin to lower mortgage rates (albeit marginally).
The New Zealand share market saw the latest round of financial reporting, where companies report either their half-year or full-year financial results. Overall, these results fell short of expectations, contributing to the -1.1% return for the New Zealand share market last month. Despite this, there were standout performances, notably from A2 Milk, which surged 20% following robust results. A2 Milk has continued to take market share in a competitive Chinese infant formula market.
The Summer Reset
Summer has a way of easing the pressure. The days feel longer, the calendar softens, and life slows just enough to remind us that not everything needs to be urgent, solved, or optimised right now. It’s a subtle shift, but a powerful one. And it’s what we like to think of as the summer reset.
Lifetime Book Club: Ikigai by Héctor García & Francesc Miralles
“The happiest people are not the ones who achieve the most. They are the ones who spend their lives doing what they love, with purpose.”
That is the central idea of Ikigai.
This is not a hustle manual or a step-by-step guide to success. It is a gentle, thoughtful exploration of what gives life meaning, and how small, intentional choices can lead to a longer, happier, more fulfilled life.