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%.
The Biggest Mistake Existing Property Investors Make
Are you asset-rich but cash-poor? This is very common for a lot of existing property investors who purchased before or during the last property boom and experienced significant gains in property values.
Using Your Home to Grow Your Wealth: How to Leverage Equity to Buy a Rental
You have worked hard to buy your home. Paid the mortgage, watched the value rise, and chipped away at the balance over time. Now you might be wondering: can this be the foundation for something more?
If you have built up equity in your home, the answer might be yes.