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.
Is your emotional attachment to money holding you back?
The way you attach value to money is a far more complex process than you might realise. Our brains are clever little engines, attributing different emotional values to the same amount of money, depending on how important it is to us.
I Googled My Financial Future. Here's What Happened
Spoiler alert: According to the internet, I should already be retired, living off dividends, and renting out three Airbnbs in Queenstown.
Sounds ideal. If only it were true.