Market & Portfolio Update - January 2025
Global share markets had a positive month, ending December up +0.9% in local currency terms. This caps off a strong year, with global share markets up +26% in 2024.
The US was the primary driver of global returns, as inflation cooled and consumer spending remained strong throughout the year. Investors were also bullish on strong earnings growth for tech companies, and stocks surged following Donald Trump’s re-election in November.
The New Zealand share market also had a strong year, ending up +12% in 2024 – its best performance since 2020. Some of this gain is attributable to investors anticipating a more positive business environment. Starting with an initial cut in August, the Reserve Bank of New Zealand (RBNZ) cut rates by a total of 1.25% during the year. These cuts were in response to domestic inflation falling from 4.7% to 2.2% in 2024, back within the RBNZ’s target range of 1-3%.
KiwiSaver is changing
Budget 2025 has introduced some significant updates to KiwiSaver. These changes are aimed at ensuring the scheme remains sustainable while helping New Zealanders grow their retirement savings. Whether you are just starting out, nearing retirement, or somewhere in between, here's what you need to know and how it might affect your financial plans.
Lifetime Book Club: Four Thousand Weeks by Oliver Burkeman
In a world obsessed with productivity hacks, endless to-do lists and squeezing more out of every day, Burkeman offers something radical: acceptance. Not of defeat – but of reality. Because when you really look at it, four thousand weeks (roughly 80 years) is all we’ve got. And no app or bullet journal is going to give us more.