Market & Portfolio Update - July 2023
Most global share markets were positive in July, spurred higher by the energy and financial sectors, which makes for a change from the first half of the year where technology companies drove markets.
The Australian share market rallied almost 3% on higher energy prices, as resource companies make up a significant part of that market. Global share markets were also up 3% in local currency terms; however, a weak US dollar (-1.5%) offset some of the performance for unhedged NZ investors.
The key US share market saw a number of companies report earnings for the June quarter. Overall, these results highlight the resiliency of companies amidst slowing economic growth and elevated inflation. While earnings have declined from where they were a year ago, most results beat market expectations. In particular, the financials sector performed well after a tumultuous start to the year, which saw the collapse of several small regional banks. California-based Fisher Investments, used the opportunities earlier in the year to increase their exposure to financials. This paid off well in July, with holdings like Bank of America (up 10%), Morgan Stanley (up 7%), and T.Rowe Price (up 8%), all reporting strong earnings, and their share prices rose as a result.
Lifetime Book Club: The Green Mile by Stephen King
Sometimes the most powerful stories aren’t the ones that scare us. They’re the ones that move us.
Stephen King might be best known for horror, but The Green Mile is a story of humanity, compassion, and courage in the face of unthinkable circumstances. Set in a 1930s prison, it follows Paul Edgecombe, a death row officer, and John Coffey, a man with extraordinary empathy and an inexplicable gift.
The Growing Divide: Why Private Medical Claims Are Surging in New Zealand
It feels like there is another headline about our public health system being under pressure every week. Long waitlists, staff shortages, and hospitals struggling to keep up. It is no surprise that more Kiwis are turning to private healthcare to get the treatment they need and faster.