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.
Unlocking Financial Harmony: Navigating the Symphony of Life with Mindfulness
In the hustle and bustle of daily life, the concept of mindfulness often finds its place in discussions about mental health and stress reduction. However, its impact on financial wellbeing is a hidden gem worth exploring.
A 2021 survey by the New Zealand Retirement Commission ranked New Zealand’s overall financial wellbeing as 61 out of 100. In this case, financial wellbeing is defined as “a combination of meeting commitments, being financially comfortable, and resilient for the future.” The area in which New Zealand scored the lowest was preparedness for retirement, with a 43 out of 100 which highlights that around one in three New Zealanders are concerned that they will not have adequate savings to last through their retirement.
Finding Your Financial Ikigai: The Japanese Art of a Balanced & Purposeful Life
In a world that often measures success in financial terms, the Japanese concept of Ikigai offers a refreshing perspective. Transcending the boundaries of culture and geography, this philosophy loosely translates as "a reason for being". Ikigai is a convergence of what you love, what you're good at, what the world needs, and what you can be paid for. It's an approach that represents a broader view of prosperity, encompassing joy, purpose, and contentment. As financial advisers, we find this particularly compelling. This article delves deeper into how Ikigai can not only enrich your life but also inform your financial decisions for a more fulfilling journey.