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.
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.