Market & Portfolio Update - January 2023
Global share markets got off to a strong start to the year, rising 6.5% in local currency terms. Investors were encouraged by a sixth consecutive monthly fall in US year-on-year inflation in December. At 6.5%, US inflation is still above target but is down meaningfully from its peak of 9.1% in June.
Encouraging news on inflation led investors to expect fewer interest rate hikes from central banks going forward. This supported the returns of bond markets. Global and New Zealand bond markets rose around 2% – quite decent returns when it comes to bond investments. These returns provided some reprieve for bond investors after higher interest rates have weighed on bond returns throughout much of 2022.
Staying Cyber Smart
At Lifetime, looking after your financial wellbeing includes helping you stay safe online. Lately, we’ve seen an increase in online scam attempts across the financial sector here in New Zealand, so we thought this was a good time to share a few friendly reminders on how you can stay protected.
Lifetime Book Club: The Behaviour Gap by Carl Richards
Welcome back to the Lifetime Book Club, this month, we’re taking a closer look at the emotional side of investing with The Behaviour Gap by Carl Richards. It’s a smart, simple, and refreshingly honest book about the biggest threat to your financial success - you.